Date: Monday, March 10, 2025 | 06:12 PM GMT
The cryptocurrency market is experiencing a strong downtrend, with major altcoins struggling after their rallies in late 2024. Ethereum (ETH), for instance, has dropped from its December high of $4,000 to its current level of $1,900, adding immense pressure across the altcoin market.
One of the hardest-hit top altcoin in this downturn has been Sui (SUI), which has suffered a sharp 55% correction over the past 60 days, shaking investor confidence.
Testing Key Support
On the weekly chart, SUI’s correction followed its impressive rally in late 2024. A rejection from the support trendline of its ascending channel at the $4.66 level, as marked by the red circle, triggered a sharp sell-off. Since then, SUI has continuously declined, reflecting the broader market weakness.
Today’s decline has brought SUI to a crucial support zone, which coincides with its 200-day moving average (MA). This level previously acted as a strong resistance before the breakout and is now being tested as support. The red-shaded zone on the chart highlights this critical area.
As long as SUI manages to hold above this confluence of support from the 200-day MA and the previous resistance-turned-support zone, this could present an attractive opportunity for long-term accumulation.
Is It Time to Accumulate the Dip?
With SUI testing its critical support, the question arises: Is this the perfect opportunity to buy? Historically, strong support levels often act as a reversal point, and given that SUI is sitting on its 200-day MA, there is potential for a bounce.
However, traders and investors should look for confirmation signals such as increasing volume, bullish candlestick patterns, or a shift in MACD momentum before entering long positions. If SUI holds this level and sees buying pressure, a recovery to the $2.50–$3.00 range could be possible in the short term.
On the other hand, if this support breaks, further downside could push SUI toward the $1.80 level, making risk management crucial.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.