SUI Price News: Daily Chart Flashes Sell Signal – Can SUI Drop Below $3?

In the past week, the native asset of this layer-one blockchain has retreated by 4.1% as the price action has rejected a move above the $3.6 level multiple times.

However, trading volumes are strong today and have increased by 37% in the past day to stand at $1.44 billion.

Sui has been touted by its supporters as the “Solana killer” as its blockchain can process a higher number of transactions per second (TPS) compared to the latter.

Meanwhile, the latest spike in its price has resulted in 30-day gains of 56.4% for SUI and has made it the best-performing asset in the top 10 (excluding stablecoins) during this period.

SUI Daily Active Addresses Doubled

SUI’s on-chain data has been improving in the past quarter. Daily active addresses have jumped from around 600,000 to 1.4 million for a 2.3x increase while daily transactions rose from 4.5 million in early February to a peak of 10.5 million in April and have now normalized at 5.7 million – still a decent increase.

In terms of ecosystem growth, SUI has seen a tidal wave of stablecoins flowing to its blockchain. SUI supports multiple stable assets including the popular USDC and USDT. In the past 3 months, its stablecoin supply has increased from $277 to $724 million.

Finally, SUI has been embraced by top asset management firms recently. Grayscale launched last week on April 23 its SUI Trust for accredited investors while 21 Shares filed an application with the U.S. Securities and Exchange Commission (SEC) just four days ago to list a SUI-linked exchange-traded fund (ETF).

All of these developments are bullish for SUI and justify its recent price uptick. However, can SUI keep rallying as selling pressure ramps up at $3.6?

SUI Struggles to Rise Above $3.50

SUI has been rallying since April 22 when the price broke above its 21-day EMA with strong volumes. In addition, the token broke through its 200-day EMA just a few days later.

These are both two strong bullish signals. However, SUI’s bullish outlook was confirmed after the 21-day EMA crossed above the 200-day EMA. This is known as a golden cross and the last time it happened SUI surged by nearly 355% to its current all-time high.

If history repeats, this means that SUI could rise to more than $12 per token over the next 3 to 6 months.

However, as we highlighted in a previous article, SUI needs a key break above $3.5 to keep this rally going and, thus far, the selling pressure has been strong enough to keep it below that marker.

In fact, this price level has now turned into the third most heavily traded area this year as per SUI’s volume profile. This indicates that there is a tug of war raging but bulls have won the fight thus far as indicated by the significant upper tail that the price action has left behind in the past 10 sessions.

Momentum indicators have turned bearish lately as well as the MACD’s histogram has been trending lower in the past 9 days while the Relative Strength Index (RSI) seems ready for a correction after it crossed below the 14-day SMA.

This week’s outlook seems bearish for SUI despite today’s climb as the price has rejected a move above the $3.50 level. The most relevant supports to watch are the 21-day and 200-day EMAs as a break below these areas will invalidate our bullish outlook for the token.

However, if the price bounces strongly off these levels, there will be little obstacle for SUI to jump to $5 in the next few days.