SUI faces increasing sale after it fails to maintain its daily gains, in conjunction with the breaking of a triangle artistic model, which increased investor fears about a wider price correction.
While the price approaches a major support level at $ 2.78, market indicators show a decline in the purchasing momentum, especially in the derivative market, which reflects an escalation in the negative trends surrounding the currency.
Return in futures contracts deepens the negative view of sui
Coinglass platform data indicates a sharp decline in the volume of open interest to $ 1.15 billion, which is the lowest level since April 25, and this represents a decrease of more than 43% compared to the historical climax recorded on May 23 at $ 2.05 billion, and the decrease of open interest often reflects the exit of capital from the derivative market, which weakens the appetite for purchase and enhances negative trends.
Besides, the likely financing rate for open interest has witnessed a noticeable decline from 0.010% to 0.0060%, and this decrease confirms the decrease in purchasing pressure, as positive rates usually reflect a high purchasing activity in the market, so their decline reflects the decline in momentum.
On the other hand, the trading volume, according to the direction of the deal, shows that the percentage of short centers (open sale) constitutes about 55% compared to 45% for long centers, which supports the view that the market is moving towards more correction, and the total percentage between long and short centers is 0.8195, which enhances the reference to the increasing sales tilt.
Decisive support test and additional drop risks on the horizon
The Sui currency has difficulty maintaining the level of vital support at $ 2.78, which was last tested on March 27, and at the time of the report, the currency is traded at $ 2.85 after it recorded its lowest daily level at $ 2.68, which is the lowest level since April 23.
The technical fracture of the artistic triangle model in the daily chart indicates that the most likely track now is the landing, and if the currency is closed below the level of $ 2.78, the price correction may extend towards the following support at $ 2.24, which corresponds to the level of Fibonacci correction 23.6% between the highest price at the time at $ 5.36 and the lowest annual level at $ 1.71.
Despite these negative signals, momentum indicators show different signals, and the RSI indicator (RSI) is 36 and heads towards the saturated saturation, indicating the increasing selling pressure, but at the same time it constitutes a bottom of the June 5 bottom in reference to a positive spacing that may precede an upward bounce.
As for the index of rapprochement and divergence of moving averages (MACD), it continues to decline in the negative area, which reflects the continuation of the downward trend in the short term.
The risk of ascension is standing but conditional
In the event that the currency succeeds in reversing the level of $ 2.78, the $ 3 region will constitute an important psychological barrier and an important technical resistance, as it matches the level of Fibonacci correction of 50% at $ 3.03, and exceeding this barrier may nullify the landline scenario and open the door to a height of about 3.55 dollars, which is the highest monthly level of the currency.
