The native token of layer-1 blockchain project Sui has snapped back from a deep selloff in recent days but still faces formidable resistance to regaining bullish momentum.
SUI plunged 60% from 2023 highs of $1.45 reached in mid-January as enthusiasm dried up across digital assets. However, the token found support just above the $1 threshold before bouncing back above $1.10.
That relief rally validated the 0.382 Fib line as support and turned previously bearish momentum indicators like the relative strength index (RSI) back upward. Now analysts debate whether SUI can overcome further technical barriers to drive upside follow-through.
SUI faces resistance near $1.23
The token currently faces immediate resistance around $1.23, with a negative reaction likely to cause another leg down to underlying support at $1. Buying momentum able to lift prices past that supply barrier opens the door for SUI to retest recent swing highs up near $1.50. The token is currently up by around 9% in the last 24 hours.
Longer-term outlooks vary among crypto chartists as SUI attempts to turn the corner after such a devastating shortfall. Some spot underlying value in the layer-1 protocol itself, citing enthusiasm still circulating among developers and decentralized finance (DeFi) participants.
— Nihilus (@nihilus_XBT) January 22, 2024
However, others take a more skeptical view on whether a serious price recovery can develop given deteriorating conditions across digital assets. For neutral analysts, SUI’s reaction once it challenges current overhead resistance should determine the ensuing trend maturity.
Near-term momentum gauges like the daily RSI have turned upward with the latest bounce, implying that a mean reversion could lift prices out of oversold territory. Still, seller congestion presents a serious test to bulls, hoping renewed technical tailwinds translate into a sustained trend reversal.
The coming days will reveal whether optimists or pessimists have a better grasp on SUI’s next directional move in the wake of its steep correction. The price behavior in well-defined technical areas should set the tone for trader positioning and expectations.