The cryptocurrency market has entered another wave of turbulence, and altcoins are bearing the brunt of it. Among the tokens under pressure is Sui (SUI), which has failed to sustain a recent rally and now hovers around the $3 mark. After falling more than 25% over the last two weeks, traders are closely watching whether SUI will drop to its next key level at $2.71.

The token’s decline reflects broader market weakness as Bitcoin briefly fell below $100,000—a key psychological threshold—before bouncing slightly. This macro instability has translated into a significant sell-off across altcoins, with Sui showing signs of continued bearish momentum.

SUI Technical Picture: Bears in Control

SUI’s recent price action has confirmed a bearish outlook, especially after its third failed attempt to break above the $4.20 resistance zone. Since then, price action has carved out a falling channel pattern on the 4-hour chart, suggesting that sellers continue to dominate.

The technical indicators also lean heavily toward a continuation of the downtrend:

• A death cross has formed between the 50 and 200-period exponential moving averages (EMAs), typically seen as a bearish signal.

• A negative crossover has also emerged between the 100 and 200-period EMAs, adding further weight to the bearish bias.

• SUI dipped as low as $2.88 before recovering modestly to around $3.02, attempting to retake the critical $3 psychological support level.

Despite this minor bounce, the broader trend remains downward. The Relative Strength Index (RSI) has moved up from oversold territory, hinting at short-term bullish momentum. However, the overall setup indicates that the rebound may be temporary, especially if it fails to break out of the falling channel.

$2.71 in Focus: Can SUI Hold Its Ground?

The $2.71 level—aligned with the 50% Fibonacci retracement—is emerging as a key area of interest. It marks a zone that could serve as both a technical and psychological support level.

If bearish momentum continues and SUI fails to hold above $3, price could slide toward $2.71, which is considered the path of least resistance in current market conditions. On the other hand, if SUI closes above the short-term $3.00 resistance level, the next challenge would be the upper boundary of the falling channel near $3.20.

Still, without a strong shift in market sentiment or a catalyst, a sustainable recovery seems unlikely in the short term.

Derivatives Market Paints a Gloomy Picture

A deeper look into the derivatives market reveals just how bearish traders have become. Data from Coinglass indicates that over $11 million in long positions on SUI were liquidated in the past 24 hours. This significant shakeout underlines how quickly bullish sentiment has reversed.

In contrast, short liquidations totaled only about $693,000, underscoring the imbalance between buyers and sellers. This disproportion shows that bears currently have the upper hand in the derivatives market.

Further reinforcing this trend is the long/short ratio, which has dropped to 0.8843. A ratio below 1 typically signals that more traders are taking short positions, anticipating further declines. Open interest has also decreased by 2.4%, falling to $1.39 billion, reflecting cautious positioning and reduced confidence among leveraged traders.

Why Traders Are Turning Cautious

Sui’s struggles aren’t happening in isolation. Broader economic concerns, shifting regulatory climates, and extreme volatility in Bitcoin and Ethereum have all contributed to an uneasy environment for digital assets. When flagship cryptocurrencies show weakness, altcoins like SUI tend to suffer even more.

This market-wide risk-off sentiment means that even promising technical setups are struggling to gain traction. For now, traders appear focused on capital preservation, rotating out of riskier assets like Sui into more stable positions or sidelining entirely.

Key Levels to Watch

As SUI attempts to hold steady, here are the critical technical levels and indicators to monitor:

• Immediate Support: $2.88 (recent local low)

• Major Support: $2.71 (50% Fibonacci retracement)

• Resistance Zone: $3.00 (psychological barrier), $3.20 (channel top)

A decisive break below $2.88 could accelerate losses toward $2.71. Conversely, reclaiming $3.20 might open the door for a short-term recovery, though broader bearish pressures will likely remain in place unless overall market sentiment improves.

Outlook: Short-Term Pain or Deeper Decline?

The current setup suggests that SUI may continue facing pressure unless significant buying interest returns. The technical indicators, derivatives data, and general market sentiment all point toward a cautious, risk-averse environment.

While the brief recovery from $2.88 to $3.02 shows that buyers are still active, the weight of the downtrend and the liquidation of bullish positions suggest that any rebound may be short-lived. Traders should keep a close eye on the $2.71 level, which could act as a make-or-break point in the coming days.

Until a broader market recovery takes hold, SUI’s path appears uncertain—with the scales currently tilted in favor of further downside.