Sui (SUI) has declined 5% in the past 24 hours, a dip accompanied by a 9.6% increase in daily trading volume, signaling a short-term uptick in selling pressure. The broader crypto market also saw losses, with Bitcoin (BTC) and Ethereum (ETH) down 1.05% and 1.14%, respectively. This makes SUI an underperformer relative to the market leaders. The price drop is surprising given that Coinbase announced SUI can now be staked directly on the exchange, with rewards accumulating directly to user accounts, an event that has seemingly served as a sell-the-news catalyst.
Sui (SUI) faced a 5% price drawdown in the past 24 hours, with a 9.6% uptick in daily trading volume. This was worrisome as it suggested a short-term increase in selling pressure.
The rest of the crypto market has faced losses over the past day, too. Bitcoin (BTC) and Ethereum (ETH) were down 1.05% and 1.14%, respectively.
Compared to these market leaders, Sui was underperforming in the short-term. Coinbase announced that SUI can be staked directly on the exchange, offering an effortless way of earning rewards.
Trader Ted noted that the bullish catalyst could help the altcoin break past a descending trendline resistance in place since early June. The token has defended the $0.66 support zone well so far.
“Some more consolidation followed by a bullish breakout was a viable scenario,” the trader wrote. The swing low at $0.65, made in June, marked the swing structure’s low.
The RSI on the 1-day timeframe recently climbed above neutral 50, but the losses of the past three days sent the momentum indicator tumbling once more. The OBV was in a downtrend, although selling pressure has eased in July.
A pullback, in the form of a rally toward $1.12 to $1.25, the Fibonacci golden pocket, was technically possible. However, it was far from playing out in reality.
In July, SUI has been trading within the $0.70 to $0.77 range. The RSI on the 4-hour chart was in oversold territory as the token approached the range lows.
While this can be a buying opportunity, a breakout past the $0.82 local resistance zone would be a stronger buy signal for swing traders. Similarly, a breakdown below $0.65 would signal that the next impulse bearish price move was imminent.
The short-term range between $0.70 and $0.77 might provide trading opportunities, but the $0.82 supply zone is also one to keep an eye on.
