Sui (SUI) is flashing signs of a potential bullish reversal on the charts, yet price action remains heavily tilted in favor of sellers. Currently forming an inverse head and shoulders pattern—a classic bullish setup—SUI has bounced from the $2.20 support zone, with the left and right shoulders aligning near $2.25. This structure typically signals a shift in momentum following a prolonged downtrend.
However, confirmation remains elusive. The neckline resistance at $2.52 has proven to be a stubborn hurdle. Despite multiple attempts, SUI has struggled to generate enough volume to break and hold above this critical level.
At the time of writing, SUI traded at $2.22, posting an 8.73% decline over the past 24 hours, according to data from TradingView. The sharp dip suggests sellers are firmly in control, and bullish momentum remains weak.
Technically, the daily chart shows mixed signals. While the MACD is beginning to curl upward—hinting at a potential momentum shift—it remains in bearish territory. Fibonacci retracement levels further pinpoint a key support zone between $2.16 and $2.22, which SUI is currently testing. A failure to defend this zone could open the doors for a deeper correction toward the 1.618 Fib extension at $1.42.
On-chain data reinforces the cautious outlook. Coinglass liquidation data from April 3 revealed that long liquidations surged to $1.92 million, far exceeding short liquidations of $675.78K. This imbalance suggests that bulls may have been overleveraged, with recent sell-offs flushing out weaker hands.
Additionally, the OI-weighted funding rate turned slightly negative at -0.0056%, signaling a slight tilt toward short positions. While the metric remains near neutral, it reflects a market in wait-and-see mode—hesitant to commit until a confirmed breakout or breakdown occurs.
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SUI‘s inverse head and shoulders pattern holds promise, but without a confirmed breakout above $2.52, bears maintain their grip. A decisive move above this level, backed by strong volume, is critical to validate any bullish scenario. Until then, downside risks remain in play.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
