SUI’s price has dropped to $3.57, falling below the $4 mark for the first time in over a month.
The token’s market cap currently stands at $10.72 billion, reflecting a 15% decline in the last day.
The oversold indicators suggest that SUI may be undervalued and poised for a potential rebound.
SUI , the Layer-1 blockchain developed by Mysten Labs, has seen its price fall below the $4 mark after maintaining this level for over a month. As of early January 27, SUI is trading at $3.57 with a 24-hour trading volume of $1.47 billion, according to CoinMarketCap. The token’s market capitalization now stands at $10.72 billion, marking a 15% drop in the last 24 hours.
This decline mirrors the broader crypto market’s current downturn. Over the same period, the global cryptocurrency market cap has shrunk by 7.7%, now valued at $3.33 trillion. The Crypto Fear and Greed index currently sits at 71, clearly greed to buy the dip among the investors.
Nefarious.sui, a prominent crypto analyst on X, investors to remain calm amid the price slump. He advised them to accumulate SUI, underscoring optimism in its long-term growth prospects.
SUI’s Rise and Current Challenges
Despite the recent price dip, SUI’s ecosystem continues to grow. The platform now boasts 50 million accounts and has a Total Value Locked (TVL) of $1.59 billion, as per DeFiLlama. Although down from the $1.75 billion TVL recorded at the end of 2024, the ecosystem’s activity remains .
SUI currently stands at the 16th position in the list of the largest cryptocurrencies by market cap. However, its recent fall below $4 has raised concerns among traders.
Technical analysts highlight $4 as a crucial support level for SUI to maintain its bullish trajectory. Crypto trader Henry to see a sustainable retest at around $4, which, according to him, will lead to the token at $5 and beyond.
However, a failure to reclaim $4 could trigger a sell-off, pushing SUI further down and challenging its bullish outlook. Adding to the complexity is the upcoming February unlocking of 2% of SUI’s total supply, an event that will increase circulating supply and potentially affect the token’s trajectory.
Oversold Indicators
Technical indicators suggest SUI might be entering an oversold zone. On the daily chart, the Relative Strength Index (RSI) stands at 33 with a downward gradient, signaling weakening upward momentum but hinting at a possible trend reversal.
Additionally, SUI price has dropped below the lower band of Bollinger Bands, often considered a sign of temporary undervaluation. This suggests that the token’s current dip could represent a buying opportunity for investors expecting a rebound.
In the long term, analysts predict that SUI could reach between $10 and $20 in the ongoing bull cycle.
