The SUI price is once again showing signs of weakness after failing to sustain above the crucial $1.30 resistance zone. Following a sharp breakout rally over the past few sessions, the token quickly lost momentum and slipped back toward lower support levels. The weakness comes shortly after the highly anticipated SUI Basecamp event in Miami, which was expected to generate stronger bullish momentum for the ecosystem. However, despite the event-driven hype, the broader market response remained relatively muted, with the rally fading quickly after the initial surge.
At the same time, derivatives data now suggests bullish conviction may be weakening as traders begin reducing leveraged exposure around the recent highs. The latest rejection has also increased concerns that SUI could revisit the $1 range if buyers fail to regain control soon.
SUI Faces Strong Rejection Near Key Resistance
The daily chart suggests the SUI price is struggling to sustain its recent breakout rally after facing strong rejection near the $1.32 resistance zone. The token briefly surged above the range with a sharp spike in volume but quickly lost momentum. The price failed to surpass the 200-day MA, which is considered a strong resistance.
Meanwhile, the CMF also plunged after a strong rise, suggesting liquidity is moving out of the platform. The $1 price range serves as a crucial support at the moment, which could be tested as the selling pressure mounts. Besides, the derivatives data are also beginning to reflect weakening bullish conviction.
The derivatives data are also beginning to reflect weakening bullish conviction. Open Interest on SUI futures surged toward the $80 million mark during the breakout rally before cooling down to nearly $68.45 million, indicating leveraged traders are gradually reducing exposure after the failed breakout attempt. Meanwhile, the aggregate funding rate has slipped back toward negative territory near -0.0022%, suggesting bullish sentiment is fading.
The combination of falling Open Interest and weakening funding rates usually signals long liquidation pressure and declining confidence among leveraged bulls.
Can SUI Hold Above $1 as Selling Pressure Intensifies?
Overall, the current market structure suggests the SUI price is entering a critical phase after failing to sustain its breakout above the $1.32 resistance zone. The recent rejection and weakening derivative activity indicate the market may continue flushing short-term leveraged positions before establishing the next directional move.
For the bulls, reclaiming and holding above $1.32 remains crucial to revive momentum and open the path toward the next resistance levels near $1.50 and potentially $1.80. However, if the price continues trading below the resistance while selling pressure intensifies, SUI may revisit the key support near $1.05, extending to $0.90.