The Layer-1 blockchain token faces heavy selling pressure but technical indicators suggest a potential rebound as a double-bottom formation emerges near the $1.90 zone.
SUI Price Dips Below $2.00 Amid Surging Volume
SUI (SUI/USDT) slipped below the critical $2.00 support level on Thursday, triggering a wave of volatility across exchanges. Despite the decline, the token has shown signs of a potential rebound as traders point to a double-bottom structure forming on the daily chart.
At the time of writing, SUI traded around $2.007, marking a 2.5% intraday drop and extending its monthly loss to over 52%, according to TradingView data. The move came as daily trading volume spiked to 12.8 million, signaling heightened activity from both buyers and sellers.
Technical Indicators Hint at Possible Reversal
Chart data shows a significant accumulation zone between $1.85 and $2.00, where previous change-of-character (ChoCH) signals appearedāindicating buyer interest near historical lows. Analysts note that SUIās recent break of structure (BOS), followed by consolidation, may precede a short-term reversal.
āThe $1.90ā$2.00 range has acted as a strong liquidity pocket since April,ā explained a market analyst at Ā BitXJournalĀ . āIf volume remains elevated and the price closes above $2.10, we could see momentum build toward the $2.50 resistance area.ā
The chart also identifies strong resistance zones between $2.50 and $3.50, while the $1.50 level remains a critical downside target if selling pressure continues.
Market Context and Investor Sentiment
SUIās weakness mirrors the broader correction in Layer-1 tokens, many of which have struggled to maintain gains amid shifting market sentiment. Still, traders highlight the tokenās previous downtrend breakout in April, suggesting potential for recovery if bullish volume confirms support re-entry.
āThis kind of volume spike near structural support often marks exhaustion among sellers,ā said Ā BitXJournalĀ analyst. āIf the double-bottom holds, it could mark the start of a new mid-term uptrend.ā
While the short-term trend remains bearish, SUIās technical setup indicates that a rebound could be imminent if price stability returns above $2.00.
For now, traders are closely watching whether buying pressure around the $1.90 zone can spark a reversal rally, potentially setting the stage for a move toward $2.50 in the coming sessions.
The next few daily closes will likely determine whether SUIās latest dip is a deeper correction ā or the foundation of its next recovery phase.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.