The SUI token faced a sharp reversal late Monday, sliding nearly 6% to $4.04 after briefly spiking to $4.44 during overnight trading. The drop mirrors broader weakness in the digital asset sector, driven partly by a strengthening U.S. Dollar Index (DXY).
Technical Breakdown: Resistance at $4.20, Support Near $4.08
Despite early momentum pushing SUI to a 24-hour high of $4.44, the token encountered heavy resistance as trading volumes surged past 32 million tokens — far above average. Bulls attempted to defend the $4.32 support zone, but sellers took control as SUI broke beneath critical levels.
SUI ended the session at $4.11, down 5.25% for the day.
CoinDesk Analytics data highlights new resistance forming between $4.20 and $4.24, with signs of a double-bottom pattern near $4.08, potentially hinting at price stabilization if market conditions improve.
Macro Pressures: Dollar Index Rise Hurts Risk Assets
The token’s decline coincided with a 0.9% rise in the U.S. Dollar Index, a traditional headwind for risk-on assets like cryptocurrencies. As the greenback strengthens, capital often rotates away from speculative sectors, which helped trigger the broader sell-off.
The CoinDesk 20 Index, a barometer of major digital assets, fell 1.4% on the day.
Crypto markets overall appeared sensitive to macro sentiment, and SUI was no exception. Short-term traders likely took profits after SUI’s recent 46% surge over the past month, adding more pressure to already declining momentum.
Outlook: Volatility Ahead, but Long-Term Momentum Intact
While today’s drop marks a clear technical setback, SUI remains up nearly 50% in the past 30 days, reflecting continued investor interest in the Sui blockchain ecosystem. Analysts will closely watch whether the $4.08 double-bottom holds, potentially signaling a bullish reversal if broader sentiment stabilizes.
If the crypto market weakens further, SUI may test the $3.90–$4.00 range.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.