During Monday’s trading session, the SUI price projected a slight uptick of 1.3% jump to reach a trading price of $1.36. The bullish turnaround likely followed broader market sentiment as the U.S. Federal Reserve confirmed maintaining the federal funds rate at 4.25% to $4.5%. While the crypto market is yet to prolong the bottom formation of the current correction, assets like SUI stand as major support levels to interest crypto investors.
Key Highlights:
- The SUI price wavering above 38.2% and the 50% Fibonacci retracement level indicates a health pullback for market buyers..
- An ascending trendline is a daily chart that drives the current uptrend.
- A 20% in TVL indicates that investors and liquidity providers may be exiting the SUI ecosystem.
DeFi Activity on SUI Network Declines as TVL Drops
According to DeFiLlama data, the SUI networks’ total volume locked has significantly dropped from $2.06 to $1.65— a 20% decrease in the last three weeks. The declining TVL often indicates that investors and liquidity providers are withdrawing funds, potentially signaling waning confidence in the SUI ecosystem.
Lower TVL suggests a drop in DeFI participation, which could notably impact the native cryptocurrency SUI.
SUI Price Tests Critical Fibonacci Levels
Amid the broader market uncertainty, the SUI price formed a local top at $5.36 level in early January. The bearish turnaround has plunged the asset over 30% to trade at $3.7.
The falling price, accompanied by a surge in trading volume, hints at higher conviction from sellers to prolong this correction. Currently, the SUI price seeks support at the 38.2% Fibonacci retracement level, while the next major support is at $2.9, coinciding with 50% FIB..
Theoretically, these Fibonacci levels show healthy retracement levels for an asset to recuperate the exhausted bullish momentum.
The daily chart analysis also displays the current uptrend trajectory in the SUI price with an ascending trendline acting as a dynamic support. These aforementioned levels would be curricula for SUI to maintain its bullish trend.
Thus, a potential breakdown below these will accelerate the selling pressure and drive an extended correction below $3.
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