The SUI token has just broken a critical technical level by dropping below its $2.60 support, with an unusual surge in volume. Approximately 2.7 million tokens were traded within a minute, pushing volumes 180% above their average. This price action raises legitimate concerns about the current market dynamics of the layer 1 project.
The explosion in trading volume is not necessarily a bearish indicator in itself. In many cases, a sharp increase in volume reflects a major transfer of ownership from weak hands to strong hands. Whales and institutional investors often take advantage of these panic phases to accumulate at levels they consider attractive.
The SUI ecosystem, developed by former Meta engineers who worked on the Diem project, benefits from a solid technical architecture based on the Move language. This infrastructure is gradually attracting DeFi and NFT projects, strengthening its medium-term fundamentals. The current correction could therefore represent a simple consolidation phase after several weeks of positive performance.
The technical indicators nevertheless show mixed signals. The RSI on the daily timeframe remains above 40, suggesting that the token is not yet in oversold territory. The next psychological support is around $2.40, a level that bulls will need to defend to avoid a bearish acceleration toward $2.20.
Experienced traders know that volatility generates opportunities as well as risks. The breakdown of support at $2.60 calls for a reassessment of positions. For those who practice range trading, this zone could offer an interesting entry point if the price rebounds with volume confirmation.
Risk management remains paramount in this context. Placing tight stop-loss orders, diversifying exposure across multiple layer 1 assets, and monitoring correlations with Bitcoin and Ethereum are essential practices. Long-term investors can view this correction as an opportunity to accumulate in stages, spreading their purchases across several price levels.
The on-chain activity of SUI also deserves attention. The number of daily transactions and TVL growth in the DeFi ecosystem provide more reliable indicators than short-term price fluctuations for assessing the fundamental health of the project.
SUI: The crypto attracting whales and moving the market. Ready for the next rebound?
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