SUI dips 5% amid heavy selling pressure

Key takeaways

• SUI is down 5% in the last 24 hours, dropping below the $4 mark.
• The broader market is facing heavy selling pressure, with BTC now below $119k.

Altcoins suffer huge losses

The cryptocurrency market is having a bearish start to the week, with major coins and tokens currently in the green. Bitcoin, the leading crypto by market cap, is down by over 2% and has dropped below the $119k level after hitting $122k over the weekend.

Ether has maintained its price above $4.200 as it remains the strongest altcoin, while XRP is trading around $3.15, down 3.6% in the last 24 hours. 

SUI, the native coin of the Sui blockchain, has lost 5% of its value, a similar average to other leading altcoins. It has now dropped below $4 and currently trades at $3.6846 per coin. The bearish performance comes amid heavy selling pressure in the market.

Data obtained from CoinMarketCap shows that SUI’s open interest (OI) has dropped 15% to $1.79 billion. Furthermore. Funding rates, which affected the cost of holding leveraged long positions, declined to 0.0083%, down sharply from their July peak of 0.075%. 

These data show that traders are not eager to maintain bullish leveraged bets, suggesting a cooling in market sentiment.

The bearish performance also comes after Swiss digital asset bank Sygnum announced on Friday that it expanded its offerings to include custody, trading, and lending products tied to the Sui blockchain.

SUI could retest the $3.2 low if selling pressure persists

The SUI/USD 4-hour chart is bearish and efficient as the coin is currently underperforming. The efficiency suggests that SUI has grabbed liquidity to the upside and could drop further.

The RSI of 43 shows that SUI could enter the oversold region if the negative sentiment thickens. The MACD lines are also looking to crossover into the negative territory amid selling pressure.

If the market conditions persist, SUI could drop to the $3.2 support level over the coming hours. The support could hold and allow SUI to bounce back in the near to medium term. However, failure to hold will see SUI test the July low of $2.65.

If the market conditions improve, SUI could reclaim the $4.0 weekend high before rallying towards $4.43.