Date: Tue, Jan 21, 2025, 06:12 AM GMT
In the cryptocurrency market, the last 24 hours have been notably volatile. The much-anticipated inauguration of Donald Trump concluded without any direct comments on cryptocurrency, but large-scale buying by Trump’s World Liberty Financial hints at a pro-crypto stance.
Meanwhile, Bitcoin dominance surged to 59%, pushing many altcoins into the red. Amid this downturn, Layer-1 token Sui (SUI) has also experienced a significant decline, shedding over 5% of its value.
Breaches Ascending Channel Support
Sui (SUI) has been a standout performer in recent months, rallying from $1.85 in November to a remarkable all-time high of $5.36. During this period, SUI established an ascending channel pattern, defined by consistent higher highs and higher lows. The token also repeatedly broke descending trendlines (highlighted with circles on the chart).
However, the recent wave of volatility has caused SUI to breach its channel support at the $4.66 level. This drop also sliced below the 50-day moving average, a key technical indicator, signaling a bearish outlook.
Currently, SUI is trading at $4.30, holding above the current support level of $4.23.
Technical Indicators Signal Caution
The MACD (Moving Average Convergence Divergence) indicator supports the bearish narrative:
- The signal line is above the MACD line, confirming a downward trend.
- The histogram is widening in the negative zone, reflecting increasing bearish momentum.
Unless these MACD lines converge and cross upward soon, further downside could be expected. The next support level lies at $3.95, and traders should keep an eye on this level if selling pressure intensifies.
Is a Recovery or Further Decline Ahead?
For SUI to stage a recovery, bulls need to reclaim the $4.66 level, where the ascending channel support was broken. A quick bounce from the current levels and a reversal of the MACD signals could spark a bounce.
However, if the $4.23 support fails to hold, SUI might face further decline toward $3.95, the next critical levels on the chart.
Traders should monitor Bitcoin’s dominance and overall market sentiment, as these factors will play a pivotal role in determining SUI’s next move.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
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