- SUI’s Open Interest hits monthly low as taker sell volume rises, signaling extended pressure on short-term price stability.
- Despite surpassing Solana in stablecoin volume, SUI trades lower with RSI at 33.64 and MACD showing persistent weakness.
- A July 1 unlock of 58M SUI tokens and fallout from May’s $223M DeFi hack continue to weigh on investor sentiment.
SUI extended its decline on Wednesday, approaching a key support level at $2.78, following Tuesday’s sharp price correction. The digital asset has shown clear signs of weakness, with technical indicators aligning with increased sell-side pressure. This downward trend has continued despite a notable surge in network activity.
On-chain data shows that SUI recently surpassed both Solana and Toncoin in daily stablecoin volume. Sui Network now processes twice the stablecoin volume of Solana, a key shift in DeFi usage. However, this growth in utility has yet to translate into price strength in the short term.
Derivatives Market Decline Points to Extended Pressure
SUI’s Open Interest dropped to its lowest level in a month, indicating fading interest in leveraged positions. The taker sell volume remained high, confirming consistent sell pressure across exchanges.
Traders remain cautious as SUI continues to register lower highs and lower lows since peaking above $4.50 in April. The red candlestick streak, supported by a daily sell volume of over 27 million, shows the sustained bearish momentum.
The RSI is at 33.64 and is trending lower. This level indicates that SUI is nearing oversold levels, suggesting the potential for a short-term bounce. However, the MACD remains firmly negative. The MACD line is at -0.0461, staying below the signal line and zero mark, indicating persistent downside momentum.
Analysts Track Key Zones Ahead of Token Unlock
A trader has warned of potential downside continuation if SUI fails to reclaim key support zones. The recent bounce lacked strength and did not reclaim the $2.95 level. According to the trader, further weakness across altcoins could push SUI toward $2.10 in the coming days.
Moreover, 58 million SUI tokens, worth approximately $158 million, are set to unlock on July 1. This event is already fueling sell-side concerns, increasing the likelihood of volatility in the short term.
In addition, the Sui ecosystem still faces confidence issues following the May Cetus Protocol exploit. The $223 million incident continues to weigh on investor sentiment, especially in DeFi-related activity. The Fear & Greed Index has also dropped from 65 to 48, indicating reduced speculative appetite in the market.
Larger Time Frame Remains Structurally Intact
Despite the short-term correction, one analyst maintains that SUI remains structurally intact above the $2.90 support zone. This level represents the 78.6% Fibonacci retracement of the April rally and has provided a solid base multiple times.
The analyst outlines a possible scenario where SUI could rally to $10.90 if it confirms a sustained recovery. However, the current trend offers no confirmation of such a rally beginning soon.
For now, the asset is holding a minor uptrend since June 14 but must break above $3.14 to extend gains toward $3.50–$3.60. Any failure to maintain the $2.95 level may reinforce a bearish continuation pattern in the short term.
On upside, a rebound from $2.70 could lift SUI toward $2.90, with additional resistance at $3.05. However, if SUI fails to hold $2.70, it may slide toward $2.50 or even test $2.30, last visited in March.
Overall, SUI faces near-term pressure from declining technicals and macro events, but broader network utility and long-term structure remain notable.
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