SUI price is facing massive upward pressure, which has restricted the token from triggering a strong recovery

SUI price has been facing massive upward pressure over the past few days, which has restricted the token from triggering a strong recovery

The cryptocurrency market has seen better days, with Bitcoin struggling to maintain the $40,000 level. Despite this, the crypto market is slowly recovering, and several tokens have begun to gain momentum.

As the trading volume remains in check, the bulls are trying their best to keep the token price in the green. However, with the new tokens and metaverse tokens failing to gain attention, the market breadth remains poor.

One token that has been struggling to break free from the consolidation phase is SUI, which has been facing massive upward pressure.

Recently, the SUI blockchain experienced a major exploit that drained over $200 million from the markets. Besides, Hyperliquid price broke out of the range and formed a new ATH that dragged SUI price below in the crypto rankings, which has been a major setback. In the times when the price is not displaying a possibility of a breakout, the SUI price is now believed to test the local support before the next price action.

SUI Price Analysis: Technical Overview

The SUI price is stuck within a pivotal range between the resistance zone of $3.73-$3.8 and the support zone of $3.3-$3.23. Currently, the price has dropped to the lower bands of Bollinger, while they have begun to squeeze, which indicates a period of low volatility. Usually, a squeeze results in a breakout and a potential trend reversal.

Moreover, Bollinger bands measure the volatility of a financial instrument or investment portfolio over time. They are plotted two standard deviations away from the rolling mean of the instrument's price.

Typically, about 95 percent of the time, the instrument’s price will fall within the Bollinger bands. When the bands are close together, it indicates that the volatility is low. Conversely, when they are wide apart, it signals high volatility.

However, the price is expected to consolidate a little more to trigger a breakout, and hence, a drop to the support appears to be fast approaching.

On the other hand, the CMF and RSI continue to maintain a steep descending trend, which suggests a drop in the rally strength as well as the money flow into the token. This substantiates the bearish claim of plunging to $3.25, which may erase the selling pressure and pave the way for a strong rebound followed by a healthy ascending trend.

What To Expect From SUI Price Next?

The SUI token is expected to drop further to test the support zone at $3.25. A drop to this level may be ideal for new investors to enter a long position.

Furthermore, testing the support may help in erasing the sellers’ pressure that began after the SUI token dropped from the resistance zone.

After erasing the sellers’ pressure, the buyers may regain control and propel the SUI price toward the resistance zone at $3.73. A breakout of this zone may open the possibilities of reaching $4.2 in the coming sessions.