Sui Faces Downward Pressure, Key Support at $3.00 Tested

Sui (SUI) is currently struggling to maintain its value, experiencing a 26% decline from its recent peak of $4.29, reached on May 12th. As of Thursday, the Layer 1 token is trading around $3.20, showing a slight increase for the day. The critical support level of $3.00 is vital for a potential resumption of the upward trend. However, a break below this level could significantly alter the technical outlook, potentially accelerating further losses.

Sui’s DeFi TVL Shows Resilience Amidst Selling Pressure

The Total Value Locked (TVL) in Sui’s Decentralized Finance (DeFi) sector has rebounded to $1.75 billion in the last 24 hours, after falling to $1.54 billion on May 23rd. Data indicates a 29% increase in TVL since April 1st, when it stood at $1.24 billion.

TVL represents the total value of all assets held in smart contracts across all protocols within the network.

A sustained increase in TVL is generally considered a positive sign, suggesting investor confidence in the ecosystem. This can lead to a decrease in the circulating supply, reducing potential selling pressure and creating a more favorable environment for price appreciation.

Technical Analysis: Can Sui Hold $3.00 Support and Resume Uptrend?

Sui’s technical structure suggests the possibility of a recovery. However, a sell signal from the Moving Average Convergence Divergence (MACD) indicator could outweigh buying demand, potentially leading to further declines below the immediate support level of $3.00.

This sell signal occurs when the MACD’s blue line crosses above the red signal line, making short positions attractive to traders. Expanding red histogram bars below the midline (0.00) further reinforce the bearish sentiment.

The Relative Strength Index (RSI), while stabilizing around 40, has maintained a downward trend since overbought conditions were observed in early May. If the RSI falls into oversold territory below 30, the path of least resistance will likely remain downward. However, traders may look for a move above the midline of 50 to signal a potential trend reversal in Sui’s price.

The SuperTrend indicator issued a buy signal on April 23rd, triggered when Sui’s price crossed above the trend-following tool. Using the Average True Range (ATR), the SuperTrend measures market volatility, acting as dynamic support and resistance.

As long as the buy signal remains in place, the probability of Sui resuming its upward trend, targeting recent highs above $4.00, is increased. A break above the 50-day Exponential Moving Average (EMA) resistance at $3.36 would imply increased bullish momentum.

Cryptocurrency Metrics FAQs

Here are some frequently asked questions about cryptocurrency metrics:

• Circulating Supply: The total number of cryptocurrency tokens that are publicly available and in circulation.
• Market Capitalization: Calculated by multiplying the circulating supply of a cryptocurrency by its current market price.
• Trading Volume: The total number of tokens of a specific asset that have been traded between buyers and sellers within a set trading period, such as 24 hours.
• Funding Rate: A mechanism used by exchanges to ensure that perpetual contract prices converge with spot market prices.

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