The SUI token recently underwent a spectacular volatile sequence: following a sharp 22% correction, trading volumes surged by 350%. Traders are now closely monitoring a critical level at $1.65 that could shape the blockchain project's trajectory in the coming weeks.
The recent 22% drop in SUI’s price comes amid a broader correction across the altcoin market. This decline triggered a cascade of liquidations that amplified the downward movement, forcing many traders in long positions to exit. On Binance, SUI even plummeted to as low as $0.5.
Paradoxically, this volatility has attracted speculative traders like a magnet. The 350% explosion in trading volumes demonstrates a massive influx of participants looking to capitalize on sharp price movements. Exchanges recorded unusual activity peaks, with particularly thick order books around support zones identified by technical analysis.
This trading intensity also reflects a fierce battle between buyers and sellers for directional price control. Experienced traders recognize in this pattern an accumulation or distribution phase that typically precedes a strong directional movement. The question remains which direction the price will ultimately break.
Technical analysts identify several bearish signals suggesting that a new leg of correction could be beginning. Indeed, as Cipher notes on X, the outlook isn’t entirely positive for SUI. The TVL and DEX data indicate more of a capital flight than accumulation.
The psychological level of $1.65 emerges as a critical support in this market configuration. If this threshold gives way under selling pressure, technical models suggest an additional 40% drop could materialize in the short term.
SUI’s price action currently presents a concerning technical structure for holders. Momentum indicators show a progressive weakening of buying strength, while moving averages are beginning to adopt a bearish configuration. The RSI is evolving in a neutral zone that doesn’t rule out continued decline without immediate oversold conditions.
The critical level sits around $1.65, identified as a major support by chart analysts. This threshold corresponds to a technical confluence zone where several elements converge: an important Fibonacci retracement, a former resistance turned support, and a round psychological level. If this level is breached downward with substantial volume, technical projections suggest a potential for an additional 40% drop.
The 3-day FBB indicates an intermediate support at approximately $1.89 that could also serve as solid support if buyers step in.
Current trading volumes, although high, do not guarantee an imminent rebound. In many cases, a volume explosion accompanies the end of a directional movement rather than its beginning.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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