SUI, a prominent altcoin, recently experienced a sudden 10% drop in price over the span of just three days. While such a steep decline might have raised concerns among some traders, the broader outlook for SUI remains positive, with several technical indicators suggesting that this pullback may be nothing more than a short-term cooldown.

SUI’s rise had captured significant attention, with investors flocking to capitalize on its bullish momentum. However, the recent dip followed the failure of SUI to break through the $3.59 resistance level. This price point had proven difficult to surpass, leading to a pause in the rally. Additionally, the pullback aligns with a dip in the Relative Strength Index (RSI), an indicator used to measure if an asset is overbought or oversold. As SUI’s RSI entered overbought territory during the rally, the cooldown became almost inevitable, as traders began taking profits and the price adjusted accordingly.

Despite this short-term correction, SUI’s prospects remain optimistic. The cryptocurrency market is often subject to volatility, and such fluctuations are not uncommon following large rallies. More importantly, the underlying technicals suggest that SUI might be gearing up for another breakout. A key signal that traders are watching closely is the potential formation of a golden cross, a pattern that often signals the beginning of a bullish trend. This occurs when the 50-day exponential moving average (EMA) crosses above the 200-day EMA, indicating a shift in long-term momentum.

For SUI, this golden cross could mark the end of the “death cross” phase that has dominated the market for the past seven weeks. The death cross occurred when the 50-day EMA dipped below the 200-day EMA, signaling a bearish market. However, with the golden cross now on the horizon, many traders are hopeful that the altcoin will resume its upward trajectory.

The recent price decline may actually be a healthy part of this transition. Although the price dipped below the critical $3.16 support level, the broader market indicators remain favorable for further gains. SUI’s RSI, which dipped during the recent pullback, is now stabilizing just below the overbought zone. This suggests that, while the rally has slowed, the overall bullish sentiment remains intact.

Investors are particularly keen on SUI reclaiming its support at $3.16. If the price can maintain this level and regain strength, it could lead to a retest of the $3.59 resistance level. A successful breakout past this point would signal the continuation of SUI’s upward momentum. However, the situation is not without risk. If the price fails to find solid support and continues to dip below $3.16, SUI could face a deeper correction, potentially heading toward the $2.77 mark. Such a move would signal a more significant trend reversal and could undermine the bullish thesis that currently surrounds the asset.

Overall, SUI’s recent drop is seen by many traders as a temporary adjustment rather than the beginning of a long-term downtrend. The impending golden cross, along with a resilient RSI and favorable market conditions, suggests that the altcoin could soon find its footing and continue its recovery. However, investors will need to monitor key support levels closely, as a failure to regain these levels could shift the market sentiment toward the bearish side. For now, though, SUI remains a coin to watch closely in the coming days, as its next moves could determine the future trajectory of its price.