SUI Holds Strong Above $4: Can It Overcome Bearish Signals?
- Despite a 23% drop, SUI holds above $4, benefiting from market recovery and stable interest rates by the Federal Reserve.
- SUIs price surged 10.85% to $4.12, but its funding rate remains negative, signaling cautious market sentiment.
- With bearish technical indicators, SUI faces resistance at the 0.382 Fibonacci level, potentially targeting $3.17 in the short term.
Despite the SUI price dropping by 23% from its all-time high, its price continues to trade above the $4 level. This stability comes at the same time as there is a slight improvement in the market. Keeping the interest rates constant has also contributed to the recovery process by the Federal Reserve. This was some consolation though it was not enough to change the fortunes of SUI which has been struggling to get off the ground.
On the 28th of January the price of SUI was at $3.65. At the time of writing, the cryptocurrency has increased by 10.85% and is currently being traded at $4.12. This made it evident that at the early stages of the trading session, there would be no buying pressure and token could easily fall below the $3 mark. Nevertheless, since the general market has responded positively to the decision made by the Fed, SUI has followed the suit.
Bearish Trend Persists for SUI
Nonetheless, the market has experienced a comeback, and the funding rate of cryptocurrency is still negative. The funding rate is one of the most important metrics of the market sentiment. A positive funding rate means longs are paying shorts, which implies that the traders are bullish. Nevertheless, the current funding rate of SUI is -0.005%, which shows the bearish trend. This negative rate implies that the traders are not sure on the future price trend of SUI in the next few hours.
The technical indicators also are indicating a bearish trend concerning cryptocurrency. The price of the cryptocurrency is still within the range of the descending channel. This pattern reveals that the stock has formed lower highs and lower lows, which signifies the absence of buying pressure. The Bull-Bear Power (BBP) is also in the negative territory which implies that the bears are in control of the market. This depicts that bears are dominant in the market presently to some extent.
Fibonacci Levels and SUIs Struggle
There is another concerning indicator the Money Flow Index (MFI). The MFI indicator is used to determine the buying and selling pressure. The MFI is going down, which means that buying pressure is not very strong. If this remains the trend, it may put more pressure on token prices, which will make it quite difficult to see a price rise.
At the moment, as depicted by the Fibonacci retracement levels, token is trading within the 0.382 pullback area. This level often presents a resistance, although with low buying pressure, it is improbable for the cryptocurrency to go through it.
The short-term price target of coin could be estimated at $3.17 if the trend remains the same. Nevertheless, if the cryptocurrency manages to penetrate through the descending channel, it may climb up to $4.90. Traders will be analyzing these levels for changes in the trend and the upcoming days will be decisive for crypotcurrency in the near future.
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Read more: https://www.tronweekly.com/sui-holds-strong-above-3-can-it-overcome/
Text source: TronWeekly
