Sui (SUI) has been struggling to maintain momentum in the face of increasing bearish pressure. The token is currently testing the critical $3 support level, which has been pivotal in previous price movements. However, recent price action and market sentiment suggest that SUI could experience further losses, potentially falling by as much as 7% in the near future. With key levels such as $2.84 and $3.9 acting as support and resistance, the outlook for SUI remains uncertain, with potential volatility ahead.

Testing the $3 Support Level

Sui has repeatedly tested the $3 support zone over the past week. After initially bouncing off this level, the token surged nearly 20%, reaching the $3.6 supply zone. However, this bounce may not be sustainable, especially considering the bearish momentum developing in the broader market. While the $3 support has proven to be a strong level in the past, the ongoing lack of strong bullish conviction could make it difficult for SUI to maintain this support.

The token’s recent price movements have shown a steady decline, and this trend could continue if the $3 support fails to hold. If SUI breaks below this critical level, it could trigger further losses, with the next key support zone at $2.84 becoming a possible target.

Bearish Momentum on the Horizon

On the daily chart, SUI is showing increasing signs of bearishness. The Awesome Oscillator, a technical indicator used to measure market momentum, has been forming red bars on the histogram, signaling a buildup of downward pressure. Although the Chaikin Money Flow (CMF) has not yet fallen below the -0.05 threshold, which would signal significant capital outflows, the overall market sentiment appears negative.

These bearish signals suggest that SUI may continue to struggle in the coming days. The lack of a strong rebound following the recent price drop further reinforces the idea that the token’s price could continue to slide, especially if broader market conditions remain weak.

Liquidity Levels and Possible Price Targets

Looking at the liquidation heatmaps over both the 3-month and 2-week periods, key liquidity levels for SUI are emerging. The $2.84 level stands out as a significant zone of liquidity, making it a likely target in the event that the $3 support fails. This level could act as a magnet, drawing the price lower in the short term.

Additionally, the $3.9 resistance zone remains important. If SUI manages to break above this level, it could potentially face less resistance as it moves higher, but this seems less likely given the current market conditions. The liquidity levels at $2.84 are more densely populated, and a decline to this area could pave the way for a short-term recovery, potentially reaching $3.52, depending on market sentiment.

Market Sentiment and Future Price Movements

SUI’s price movements in the coming weeks will largely depend on the broader market environment. While there is potential for a price bounce if the token tests the $2.84 level, any significant movement upward would require positive market sentiment and buying pressure. Without a solid rebound from key support levels, however, SUI could remain in a retracement phase, facing more downside risk before finding its footing.

Traders and investors should keep an eye on the key levels of $3 and $2.84. If these support zones hold, SUI could potentially reverse its downward trend. However, if these levels are breached, the token may continue to slide toward lower levels, with $2.43 being a possible downside target.

Conclusion

Sui’s price action is currently under pressure, and with bearish momentum building, the token faces the risk of further losses. The $3 support level is critical for any potential recovery, and if it fails to hold, SUI could fall to $2.84 or even lower. Traders should watch for signs of a bounce or breakdown at these key levels to better understand the future direction of the token. With market conditions remaining volatile, the outlook for SUI remains uncertain, and investors should proceed with caution.