SUI Price Rises From 3-Month Low — Resistance Clouds Future Gains

• SUI price has gained 10% in the last 24 hours after dropping below $3.
• Despite breaking out of a falling wedge, the momentum remains bearish.
• Directional strength looks weak, indicating that SUI could erase the gains.

On Sunday, Feb. 9, SUI’s price dropped below $3 for the first time since November 2024. This decline to a three-month low aligns with CCN’s analysis of a further breakdown.

However, today, the token of the layer-1 blockchain has broken out of the downtrend that started after it failed to retest its all-time high on Jan. 19.

While the recent uptick is a positive sign, this analysis reveals that a run above $5 could be unlikely.

SUI Rebounds

SUI’s recent performance has led to a 10% surge in the past 24 hours. Trading at $3.54, the daily chart shows that the altcoin hit this value after rising above the upper trendline on a falling wedge.

The falling wedge appeared after SUI’s price formed higher lows from $5 to $3 and wobbled lower lows from $4.35 to $2.98. However, the bullish reversal appeared as sellers lost momentum and buyers slowly capitalized on the fatigue.

Despite the upswing, the Moving Average Convergence Divergence (MACD) is stuck in the negative region. When the MACD reading rises above the zero line upward, it indicates bullish momentum.

Therefore, the decline in the MACD reading indicates the momentum around SUI is bearish. Since the price increased and the indicator’s rating dropped, it signifies a bearish divergence.

Sentiment Remains Bearish

If sustained, SUI’s price might be challenging to keep up with the uptrend. On-chain data also support the thesis that SUI is unlikely to build on its recent double-digit upswing.

According to Santiment data, SUI’s Weighted Sentiment remains negative. This metric gauges the overall tone of commentary surrounding an asset.

A positive reading indicates increased optimism, potentially driving higher demand. However, as of this writing, the negative sentiment reflects a rise in pessimistic remarks.

If this trend persists, it could suppress SUI’s demand and put downward pressure on its price.

SUI Uptrend Looks Weak

An assessment of the 4-hour chart also validates the bearish divergence. The average directional index (ADX) reading is 16.13 during this timeframe.

The ADX measures the strength of a trend. A reading above 25 signals strong directional movement, while a reading below 25 indicates weakness.

Thus, despite SUI’s price increase, the ADX suggests that the upward momentum remains weak.

Should this remain the same, SUI’s price might fail to breach the resistance at $3.88 and $4.23. Instead, the token could get pushed back.

If this happens, the altcoin’s value could drop to $3.09. If demand continues to fade, the price might decline again to $2.89.

However, the uptrend might continue if momentum becomes bullish and SUI breaks above the $3.88 resistance.

In that case, the cryptocurrency’s price might jump to $4.73 or hit a new high of $5.37.