SUI remained under pressure during the January 28 trading session as price action continued to respect a broader bearish structure on the daily chart.

The token remained in the region of $1.40-$1.41 as it failed to recover above the short-term moving averages, although there are signs of a larger uptrend. Market participants are observing whether this level will hold or whether sellers will drive the price lower.

SUI Daily Trend Shows Persistent Bearish Momentum

According to the data on Tradingview, on the daily chart, SUI remains below critical indicators of trends. The 20-day and 50-day moving averages are below the 100-day and 200-day averages, and all four are trending downwards. This indicates that bearish momentum is still dominant in the short term.

Source: Tradingview

However, recent efforts at recovery have been stuck in the $1.55 to $1.65 range, where several declining moving averages offer strong resistance. Bollinger Bands are tightening, and the price is hovering close to the lower band.

This is an indication that selling pressure is still present and not a relief rally. If SUI breaches the lower band on a daily closing basis, the price may fall to the psychological $1.30 level, then to $1.20 if the selling momentum quickens.

Momentum indicators also support a cautious outlook. The relative strength index is at 35, indicating weak buying pressure and a lack of follow-through buying.

It is not oversold, but the RSI remains below the middle line. The MACD is still negative, with increasing histogram bars, indicating that bearish momentum has not yet dissipated.

Source: Tradingview

Long-Term Structure Suggests Accumulation

However, the bigger picture remains clear. Since its early trading period, SUI has been following a wave pattern with strong and fast rallies and managed corrections.

The initial strong breakout resulted in a 505% rally, which is typically associated with a trend reversal when the price breaks out of a downward wedge. This rally was followed by a small correction with higher lows, indicating accumulation and not selling off.

The second strong rally resulted in a 1,050% increase in price, indicating strong buying during a rally in the broader market. Every correction since then has been in a falling wedge, indicating compression and not panic selling.

Source: X

Wave Structure Still Points to 220% Upside Scenario

The most recent drop came with a strong liquidation wick that briefly took SUI below key support levels but recovered quickly. This is normally an indication of forced selling and a reset of leverage, which helps to clear out the weaker positions.

Moving forward, the general game plan remains that of a continuation if higher lows are maintained. An impulsive phase may see a 220% increase if historical patterns are anything to go by, which will see long-term targets much higher than the current levels. However, this is subject to SUI remaining above the recovery zone after the liquidation.

Also Read: SUI chart analysis points to $1.62 as a decisive recovery zone