SUI Cryptocurrency Plummets 6.64% After Reaching 24-Hour High

SUI, a prominent cryptocurrency, has recently experienced a significant downturn after reaching a 24-hour high of $3.9599. The cryptocurrency faced strong resistance at this level, leading to a sharp pullback and a 6.64% decline over the past day. This reversal has raised concerns about the stability of SUI and whether further downside is imminent.

From May 20 to May 23, SUI exhibited a clear uptrend, characterized by consistently higher highs and higher lows. This upward momentum peaked around the $4.20 level, reflecting strong bullish sentiment. However, shortly after reaching this peak, SUI encountered a sharp reversal. Large red candles appeared on the chart, indicating heavy selling pressure and a rapid loss of value. This sudden downturn caught many by surprise, with profit-taking triggering fears in the market.

Volume analysis supports this narrative, showing a notable spike in volume at the peak and during the sell-off, which indicates strong market participation in the decline. Currently, trading volume remains elevated, suggesting continued activity in the market. SUI is now testing a critical support zone between $3.6000 and $3.6500. A break below this area might pave the way for further losses, pushing the price down to the 24-hour low near $3.5233 or even lower.

Market sentiment for SUI is mixed, with clear bearish signals alongside potential bullish opportunities. The sharp decline from the $4.20 peak and the inability to maintain levels above $3.8000 signal that bearish momentum is dominating. This is supported by the 7-day performance, which shows a 5.62% drop, underscoring the prevailing short-term weakness. However, if the crucial $3.6000 support level holds firm, there could be a rebound toward $3.8000, a previous resistance turned into a support level. This support could encourage SUI buyers to re-enter the market, setting the stage for upward movement.

Looking beyond the immediate fluctuations, the overall trend for SUI remains positive. The 30-day gain of 20.29% and the 90-day gain of 5.90% reflect an overall positive trend for SUI. Despite recent setbacks, this suggests that a sustained recovery remains possible if buying pressure strengthens. SUI stands at a crucial crossroads, and a drop below the $3.6000 support could lead to additional downside pressure. However, a strong bounce from this zone might pave the way for a recovery supported by increasing volume, whereas growing volume on a decline would reinforce the bearish outlook.