SUI Remains Under Pressure After World Liberty Finance Deal — Breakout Not Validated

Key Takeaways

• Sui Foundation confirmed that it is working with World Liberty Finance to create a strategic reserve.
• SUI’s price jumped as a result of the news, but risks retracing those gains, according to indicators.
• The RSI and MACD shows a lack of bullish momentum to help the token break above resistance.
• Interested in buying or selling SUI coin? Read our review of the best exchanges to buy and sell SUI.

SUI, the layer-1 blockchain Sui Network’s token, briefly jumped to $2.83 today, March 7. This price increase was made after the project disclosed that it has collaborated with the Donald Trump family-led World Liberty Finance (WLFI) project.

However, SUI’s price failed to sustain the hike hours after the announcement. As of this writing, the token appears ready to extend its consolidation period.

In this analysis, CCN reveals the breakout did not materialize, and what is holding SUI’s price from trading higher.

Bears Keep SUI in Check Following WLFI Deal

The SUI price increase began on Thursday, March 6, shortly after the Sui Foundation made the announcement public. According to the blog post, World Liberty Finance and Sui plan to create a strategic reserve called “Macro Strategy.”

From the statement, both parties intend to use the reserve to support decentralized Finance (DeFi) assets and some other leading projects.

“We chose Sui for its American-born innovation combined with impressive scale and adoption. It is a natural complement to our mission of bringing decentralized finance to more Americans,” Zak Folkman, co-founder of World Liberty Financial stated .

The deal initially drove prices higher, but indicators show weak buying pressure. This also comes amid the formation of a bullish pattern.

The bullish pattern in question is a falling wedge, formed by the convergence of two descending trendlines. On the daily chart, SUI’s price is testing the upper trendline of the wedge and yearning for a breakout.

However, as seen above, the Bull Bear Power (BBP) is negative, indicating selling pressure still outweighs the buying volume. If this remains the same, then SUI’s price might struggle to break the resistance near $3.19 despite the support at $2.53.

SUI Stuck in Consolidation

On the same daily chart, the Relative Strength Index (RSI) remains below the 50.00 neutral region, indicating that momentum is yet to be bullish.

If the RSI reading continue to hover below the midpoint, then SUI’s price is unlikely to rally above $3 in the short term. Like the RSI, the Moving Average Convergence Divergence (MACD) support this lack of bullish momentum.

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As of this writing, the MACD holds near zero, indicating indecision. Should this remain the same, then SUI’s price might keep wobbling between $2.50 and $3.06.

However, if selling pressure intensifies, this consolidation might succumb to a breakdown and the toke could decline to $1.61.

Things May Change If…

On the flip side, SUI might breakout if the layer-1 project releases more update concerning the World Liberty Finance partnership. For instance, co-founder Adeniyi Abiodun disclosed that the recent announcement is just one part of bigger things to come.

“There’s so much more in the works. WLFI is strategically betting big on SuiNetwork as an infrastructure and product partner. The momentum is building, and there’s so much more in the pipeline. Stay tuned—this is just the tip of the iceberg!” Aboidun mentioned .

Therefore, if more details about the deal comes to light, it is likely that demand for SUI might increase. In that scenario, the altcoin might break above the falling wedge pattern and this could drive the price toward $4.59.