Sui Faces 22% Drop Risk as Bearish Fractal and Rising Wedge Signal Deep Correction

The cryptocurrency market is currently displaying signs of bearish momentum for Sui (SUI), driven by a key fractal pattern emerging on its price chart. This pattern has drawn attention from traders and analysts, who view it as a potential indicator of further price deterioration. The fractal setup suggests that sellers may dominate in the near term, increasing the likelihood of a deeper correction [1].

On the daily timeframe, SUI has been trading within a broad rising wedge — a formation commonly associated with slowing bullish momentum and eventual reversals. The pattern has shown a repetitive nature, mirroring past price action in which a strong rally following a bullish moving average crossover was followed by a breakdown below the 25-day MA, triggering a sharp decline toward the 100-day MA [1]. A failed recovery attempt then preceded a decisive breakdown toward the wedge’s lower boundary, resulting in a roughly 34% correction in that earlier cycle.

Currently, SUI is trading near $3.63, just above the key 100-day MA support at $3.43, placing it at a critical juncture similar to the last major pullback. If this support level fails to hold, it would confirm the bearish fractal and potentially open the door for a slide toward the wedge’s lower trendline near $2.80 — a potential 22% drop from current levels. This scenario aligns with the historical behavior of the asset within the same price structure [1].

Conversely, if buyers manage to defend the 100-day MA and push SUI back above the 25-day MA, the bearish outlook could weaken. In such a scenario, SUI might make another attempt to rally toward the wedge’s upper resistance, keeping the broader uptrend intact. The market remains closely watching how this pattern will play out, particularly in the context of broader crypto market dynamics and investor sentiment [1].

While the fractal setup is a key technical indicator, it is not the only factor influencing SUI’s price action. Market conditions and macroeconomic trends also play a role. However, the fractal pattern, in combination with other bearish signs such as declining volume and weakening momentum, reinforces the potential for a further decline [1].

Traders and investors are advised to remain cautious, using a comprehensive analytical approach that includes both technical and fundamental factors when assessing SUI’s outlook. The fractal setup, while significant, should be considered as part of a broader trading strategy to manage risk effectively [1].

Source: [1]CoinsProbe's Profile | Binance Square (https://coinmarketcap.com/community/articles/689b1a7c65b2ba30b64e24d7/)