Sui (SUI) falls dramatically in the cryptocurrency market. The bearish trend driven by recent technical indicators has now sent shockwaves through the crypto community as they indicate the constant decline of any asset could continue. As described, growing market uncertainty is prompting investors to readdress their positions.

Key-Takeaways:

• The SUI crash price (16% drop) over the past week and it continues to do so, registering a 40% crash potentially to $2.34 in following days as the technical mood implies.
• Relatively speaking, a Relative Strength Index (RSI) of 39 and a bearish MACD crossover signal represent strong downward momentum that’s not yet getting oversold.
• Lower than negative funding rates of -0.0281% mean the number of traders betting on price increases figures to be larger than those betting on price decreases, sign of bears’ power.
• The bearish thesis can be invalidated and a recovery to $4.45 be triggered if $3.76 daily close closes above the 200-day EMA.

Market Sentiment Turns Sour

As of Tuesday, SUI’s price is trading at around $3.54 and the price has been on a downward trajectory. Last week alone the digital asset plummeted by 15%. The alarm bells have been ringing for traders standing by to watch the once attractive blockchain token.

SUI crash immediately paints a future that is a grim picture according to technical analysis. Also in January, the price structure flagged weakness when the token fell below its ascending trendline. SUI, having gone through a brief recovery, had issues in circulating and a broken trendline when they tested subsequent trading sessions.

In addition, the token remains stagnant in its attempt to breach its 200 day Exponential Moving Average (EMA) at $3.76. Due to this resistance level, the price of the asset has faced extra pressure.

Technical Indicators Signal Further Decline

Several key indicators point toward continued bearish momentum for SUI. The Relative Strength Index (RSI) currently sits at 39, showing strong downward pressure. This figure remains above oversold territory, suggesting the decline could extend further before finding support.

The Moving Average Convergence Divergence (MACD) indicator has also flashed a sell signal. Growing red histogram bars below the neutral line indicate mounting selling pressure. Traders often view this pattern as confirmation of bearish momentum.

If current trends persist, SUI could fall to its next support level at $2.34. This potential move represents an alarming 40% crash from current prices. Such a significant drop would likely trigger widespread liquidations across leveraged positions.

Funding Rate Data Supports Bearish Outlook

Moreover, Coinglass’s Open Interest weighted funding rate data lend even more support for the bearish case. Traders have negative sentiment with the metric at -0.0281%. More investors are putting a bet on price decreases then price increases, as this figure shows.

Under futures trading, negative funding rates exist when long positions pay premiums to short positions. Usually, this situation occurs when the market’s sentiment is bearish. This sustained negative price pressure on SUI’s price in coming sessions can be observed from the current negative rate.

Even though most of the hope is lost for SUI bulls, not all is lost. If SUI closes the daily spike above the 200-day EMA at $3.76, the bearish thesis will be invalidated. Such a move may lead to the next resistance level of $4.45 turning into the recovery rally.

Nevertheless, in the existing market context, this breakthrough seems difficult. To recover from its bearish downtrend, SUI has to overcome some major technical and negative market sentiments.

As it is now, the technical setup with regards to SUI can be approached with caution by investors. If the downward trend accelerates, then setting stop-loss orders may help in limiting loss potential. Keeping up a smaller position size will also keep you from being exposed to volatile price swings.

Conclusion: SUI Crash

SUI holders should keep their eye on key support levels. The bearish outlook is confirmed if the close is daily below current support, and this could add to selling. On the contrary, taking back the 200-day EMA would mean improving market conditions.

However, the SUI crash has a very unpredictable cryptocurrency market; the prices on any asset in the market are subject to extreme fluctuations. Both traders and retail investors should, however, take their risk tolerance into consideration before taking positions in volatile market conditions.