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- The Sui fell by 10% on Friday, extending its decline to a fifth day in a row.
- The technical outlook for SUI is bearish, it is at risk of a further decline to $1.00.
Sui (SUI) fell nearly 10% on Friday, extending its five-day low this week as interest rates eased.
The broader market is shifting its focus to tier-1 stocks, and technical indicators are pointing to a double-digit drop to $1.00.
The weakness of derivatives shows the dominance of the sell side
SUI is also going down in the emerging market. According to CoinGlassSUI futures Open Interest (OI) fell 10.5% in the past 24 hours to $727.97 million, reflecting a decline in the value of outstanding contracts.
At the same time, $ 7.2 million in positions were removed, with $ 7. million coming from long positions—indicating strong selling pressure.
Technical view: Will SUI drop below $1?
The SUI/USD 4H chart is bearish and useful as the Sui has fallen by 10% in the last 24 hours. At press time, SUI is trading below the 50-period Exponential Moving Average (EMA) at $1.1558 and the Bollinger Band below $1.1442, indicating a short-term bias.
The indicator will remain above the 200 EMA at $1.0270, which means that the bullish trend is still there despite the decline.
Momentum indicators show that the bears are still in play. The Relative Strength Index (RSI) has dropped to 46, below the central line, while the MACD histogram remains in negative territory, meaning that rebounds may be met with continued selling pressure.
If the trend continues, the bulls would meet the first support at the 200-day EMA at $1.0270 and the 78.6% Fibonacci retracement at $0.9972.
A daily close below this level could see the SUI close to the previous cycle near $0.8815.
However, if the bulls regain control, SUI may run to the first resistance level at $1.2171. An extended rally could see the SUI hitting the upper Bollinger band near $1.2900, and the 23.6% Fibonacci retracement at $1.2947.
The technical structure of SUI is showing increasing trend, and traders should monitor both existing and emerging markets to indicate other problems or support meetings.
