IUE has been on an impressive upward trajectory, but signs of possible exhaustion are beginning to emerge. Key technical indicators now suggest that the cryptocurrency has entered overbought territory, prompting speculation that a pullback could be on the horizon. While the recent rebound reflects a strong bullish momentum, the market may be approaching a critical juncture. Can SUI maintain its upward streak or is a price correction inevitable?
At the time of writing, SUI has risen more than 10%, reaching a price of $4.23 in the last 24 hours. This move has boosted its market capitalization to over $12 billion, with trading volume exceeding $5.5 billion, indicating strong investor interest and market activity.
Technical analysis: indicators point to overbought conditions
SUI price on the 4-hour chart is starting to show bearish signs, with a notable drop towards the $4 support level and the 100-day SMA. This downward movement is underlined by the formation of a bearish candle, suggesting increasing selling. pressure in the market. A sustained drop below these levels could signal a broader trend reversal, making it a crucial time for price action.
Furthermore, the 4-hour composite trend oscillator for SUI shows an overbought condition, highlighting the asset’s recent strong bullish pressure. Typically, an overbought reading suggests that the price has increased rapidly in a short period, which could lead to market exhaustion as buyers begin to lose strength.
This condition often serves as a warning signal for traders, indicating the possibility of a price correction or a consolidation phase as the market seeks to regain equilibrium. If overbought pressure persists, SUI could face challenges in maintaining its current levels.
Key Support Levels to Watch for if a Pullback Ensues
If SUI experiences a pullback, it is essential to monitor critical support levels that could provide stability. Currently, the $4 level stands out as a key level, reinforced by its alignment with the 100-day SMA. A drop below this support could trigger further declines, with support zones near $3.75 and $3.50 acting as potential cushions. These levels are crucial in determining whether the pullback will be temporary or evolve into a longer bearish phase.
However, if the bullfighting If it manages to trigger a return to the $4 support level, it could mark the beginning of a renewed rally for SUI towards $4.50 and higher, implying that buyers are regaining control.
Fountain: NewsBTC.com
