Sui is Nearing a ‘Death Cross’ With a 35% Crash Scenario

Sui (SUI) is on the brink of flashing a death cross—a classic bearish technical signal—as its upside momentum fades near a key resistance confluence.

A 20-35% SUI Price Decline Likely Next

As of July 7, SUI is trading around $2.91, while its 50-day exponential moving average (EMA) is holding just above its 200-day EMA for now. But the gap between the two is narrowing quickly, raising the risk of a death cross in the coming days.

The crossover often signals a shift in a trend toward deeper losses. The previous SUI death cross in March preceded a 30% decline.

The setup comes as SUI struggles to break out of a descending parallel channel that has defined its downtrend since early May. Price action this week has stalled near the channel’s upper boundary and the flattening 50-day EMA — both acting as stiff resistance.

A rejection here could send SUI tumbling back toward the $1.90–$2.20 support range, a demand zone down 20-35% from the current levels that cushioned the March lows.

Momentum indicators are also flashing warning signs. The daily Stochastic RSI is overbought (>80), suggesting that buyers may be running out of steam. Meanwhile, trading volumes remain lackluster, failing to back a breakout move.

To flip the narrative, bulls must force a breakout above the descending channel and reclaim the $3.02–$3.10 zone, which includes both EMAs. Until then, the risk of a breakdown looms large.

$3 Resistance in Focus on Larger Timeframes

Zooming out to the weekly chart, SUI is consolidating inside a broader symmetrical triangle. The $3 level, aligning with the 1.618 Fibonacci retracement line, has flipped into strong resistance, capping upside moves since May.

A decisive breakout above $3 could set up a rally toward the triangle’s upper trendline, currently above $3.50. That is up approximately 20% from current price levels.

Despite short-term technical pressures, Sui’s onchain fundamentals remain strong. According to DefiLlama, the network’s total value locked (TVL) has rebounded to over 600 million SUI, just shy of its all-time high.

The steady growth in locked assets suggests sustained user activity and confidence in the Sui ecosystem, offering a bullish undercurrent to the otherwise cautious market structure.