The price of SUI, the native token of the Sui blockchain, has been on a downward trajectory, struggling to reclaim the $2.00 support level in recent weeks. With fluctuating market sentiment and a growing trend of short-selling, the altcoin’s momentum has been subdued, leaving traders cautious about its short-term prospects. As a result, SUI finds itself stuck in a consolidation phase, unable to break through key resistance levels or sustain upward movement.

Mixed Market Sentiment Weighs on SUI’s Price

SUI’s price action has been heavily influenced by the market sentiment, which remains uncertain and divided. Recent fluctuations in the funding rates for SUI have reflected this mixed sentiment, with rates swinging between positive and negative. This volatility in funding rates signals indecision among traders, who seem torn on SUI’s immediate future.

In the cryptocurrency market, such oscillating sentiment often leads to increased volatility, which can either amplify gains or exacerbate losses. For SUI, this has meant a lack of stability, as traders have been hesitant to take strong positions. As more traders lean toward short-selling—betting that the price of SUI will continue to decline—additional downward pressure has been applied, further suppressing any potential rally.

Short-Selling Amplifies Downward Pressure on SUI

The surge in short positions has added to the challenges for SUI, signaling that traders are skeptical about the altcoin’s ability to gain significant upward momentum in the near term. As more traders place short contracts, anticipating further declines, the sentiment becomes more bearish. This creates a self-fulfilling cycle: as the price falls, more traders jump into short positions, which further pushes the price down, reinforcing negative sentiment in the market.

For SUI to break free from this cycle, it will need to prove that it can overcome resistance levels and attract more buying interest. Until then, the short-seller dominance could continue to keep the price pinned below significant support zones, making any potential recovery harder to achieve.

RSI Decline Suggests Cooling Bullish Momentum

Another key indicator suggesting that SUI’s price may face continued pressure is its Relative Strength Index (RSI), which has been on a steady decline since mid-October. The RSI, which tracks whether an asset is overbought or oversold, had previously been in the overbought zone, signaling strong buying interest. However, the recent decline below these levels indicates that momentum is cooling off.

Currently, the RSI is hovering just above the neutral level of 50, which indicates a balance between buying and selling pressure. This neutral level suggests that there is no strong inclination in either direction, making it difficult for SUI to break free of its current consolidation. If the RSI dips below 50, it would signal growing bearish momentum, increasing the likelihood of further price declines.

$2.03 Resistance: Key to SUI’s Recovery

As of the latest market data, SUI is trading at $1.92, below the crucial $2.03 resistance level. For SUI to regain upward momentum and possibly aim for new highs, it needs to flip this resistance into support. Successfully breaking through $2.03 would signal a renewed interest from buyers and could set the stage for a potential rally, driving the price back towards previous highs.

However, if SUI fails to break through this level and sustain its gains, it will likely remain in a consolidation pattern. A prolonged consolidation could see the price lingering above the $1.69 support level, further contributing to market uncertainty. This indecision could delay any meaningful upward movement, as traders continue to wait for clearer signals.

SUI Price Prediction: Stuck in Limbo or Ready for Rebound?

Looking ahead, SUI’s short-term price trajectory largely depends on its ability to overcome the $2.03 resistance and establish stronger support levels. If the token can reclaim and hold this support, it may set the stage for a potential price rally, with a focus on $2.36, its previous all-time high (ATH).

On the other hand, if SUI continues to struggle at the $2 level, the price could remain locked in a consolidation range for an extended period. Prolonged stagnation would indicate a lack of market conviction and further reinforce the bearish sentiment. Traders would continue to focus on lower support levels like $1.69, possibly leading to more short-selling activity.

Final Thoughts: Bullish Outlook Requires Key Breakthroughs

In conclusion, SUI is currently at a critical juncture. The token’s price struggles to reclaim the $2.03 resistance and has been weighed down by mixed market sentiment and short-seller dominance. With the RSI pointing to cooling momentum and funding rates fluctuating, it seems unlikely that SUI will see a strong breakout unless it can overcome these hurdles.

For a bullish trend to emerge, SUI must not only break through the $2.03 level but also sustain its position above key support zones. If it fails to do so, consolidation within the $1.69 range may persist, keeping SUI price action in a stagnant pattern for the foreseeable future. Traders will need to watch for a decisive shift in sentiment or market conditions for any chance of a price rebound.