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SUI, one of the most closely watched cryptocurrencies, is flashing warning signs as its weekly Relative Strength Index (RSI) dips below the critical 50% threshold, bringing the cryptocurrency to the $2.36 significant support level.
This key technical indicator, often used to gauge market momentum, suggests a potential shift in sentiment from bullish to bearish. With the RSI now signaling weakening buying pressure, investorsare left wondering: Is this the beginning of a prolonged downturn for SUI? SUI’s Weekly RSI Breakdown: A Sign Of Weakening Momentum
SUI’s recent drop in its weekly RSI below the key 50% threshold signals a shift in momentum, raising concerns among traders and investors. The RSI decline below 50% usually suggests weakening buying pressureand growing bearish dominance. This breakdown could indicate that sellers are gaining control, potentially leading to increased volatility and further downside risks. Related Reading SUI Bearish Grip Tightens As Price Eyes $2.8 Retest Amid Market Pressure 2 weeks ago
For SUI, this development is particularly significant since the cryptocurrency, which has enjoyed periods of strong upward movement, now faces the risk of a bearish reversal. The RSI breakdown indicates that the market’s enthusiasm for SUI may be waning, possibly opening the door for extended declines. SUI facing heightened bearish movement | Source: SUIUSDT on Tradingview.com
Moreover, SUI’s price has now fallen below the 50% Fibonacci retracement level, signaling a weakening bullish structure. Thus, selling pressure has intensified, making it more challenging for buyers to regain control. If the price fails to reclaim this critical level, the bearish momentumcould persist, driving the asset toward deeper support zones and confirming a prolonged correction.
Should the RSI remain on a downward trajectory, it could pave the way for a decisive drop below the $2.36 support level. This breakdown may accelerate selling pressure, driving SUI toward lower support zonesat $1.59 and $1.42, reinforcing the bearish outlook. What’s Next? Key Triggers That Could Drive A Recovery
For SUI to regain bullish momentum, several key triggers must align to drive a potentialrecovery. A strong bounce from key support levels, particularly near $2.56 or $1.42, might signal that buyers are stepping in to defend the price. When this happens, selling pressure is expected to ease, paving the way for a reversal. Related Reading SUI In Bear Territory: RSI Drop Suggests Further Downside Risk 4 months ago
Another crucial element to watch is the 50% Fibonacci retracement level, which SUI has recently fallen below. A decisive move back above this level would suggest renewed bullishstrength and serve as an early sign of recovery. Additionally, an upside move is likely once the RSI starts forming a bullish divergence.
Broader market sentiment and macroeconomic factors will play a key role in SUI’s recovery. A shift in Bitcoin’s trend or overall crypto market momentum could drive a rebound, allowing SUI to challenge resistance levelsat $2.82 and $3.50. SUI trading at $2.5 on the 1D chart | Source: SUIUSDT onTradingview.com Featured image from Medium, chart from Tradingview.com