- SUI price poised for a breakdown below $0.9 amid the formation inverted flag pattern.
- Total Value Locked (TVL) has hovered around $600 million since early February.
- The 50-day exponential moving average acts as dynamic resistance against SUI price recovery.
On Friday, March 20th, the SUI price recorded low volatility trading around $0.95, registering an insignificant loss of 0.01%. Earlier today, the coin buyers did attempt a bullish upswing to breach $1 psychological resistance, but faced an immediate supply pressure amid persistent geopolitical tension and broader risk-off sentiment. Will the SUI price drive an extended correction below $0.9?
SUI Faces Downtrend Risk with Weak TVL and Declining Network Activity
In the last four days, the SUI price experienced a V-top reversal from $1.08 to $0.95 registering a loss of roughly 12%. Consecutively, the asset market cap fell to $3.72 billion while the 24-hours trading volume is at $352 million.
Typically, this reversal pattern suggests intense selling pressure and a risk continuation of prevailing downtrend. The persistent geopolitical tension and recent macro economic development has already triggered significant volatility last week in broader crypto markets.
SUI, the native token of the Sui blockchain, is still undergoing price fluctuations in the face of market uncertainty and hesitation from participants. Concurrently, inflows of capital to the decentralized finance sector of the network have revealed little movement and remain mostly stagnant.
Data monitored by DeFiLlama shows the total value that has been locked into Sui’s various DeFi protocols has been floating around around $600 million since the start of February, with some fluctuations but no real movement upwards, nor any sustained growth.
Without rising TVL, any price rallies in SUI are likely speculative rather than backed by real usage, making them less sustainable.
On a separate note, daily fees collected from chain activity have settled back into the low thousands – around the $7,000 range in recent reports – and have maintained this subdued level over an extended time frame, looking at the low levels of transaction-driven revenue generation over this span.
Bear Flag Pattern Set SUI Price For Major Breakdown
Over the past six weeks, the SUI price has been wavering around the $0.95 mark, with notable swings and no follow-up on either side. While the consolidation may indicate lack of initiation from buyers or sellers, the coin price has developed a classic bearish continuation pattern called inverted flag.
Following a significant correction in January, the SUI price now is actively bouncing within two parallel trendlines. Theoretically, this sideways action should bolster sellers to recoup its bearish momentum before the next breakdown.
The downsloping EMAs of (20, 50, 100, and 200) accentuates the broader market sentiment is bearish, reinforcing the potential for further correction. Thus, the coin price could plunge another 5.5% and challenge the flag bottom trendline at $0.9.
A bearish breakdown below the support trendline will accelerate the selling pressure and push the SUI price 10.5% to retest initial support at $0.8, followed by a dive to $0.69.
However, if the consolidation favored buyers, and the prices break above the overhead trendline, the buyers could drive a sustainable recovery above $1.
