SUI Near Critical Channel Floor With $2.90 Recovery Level in Focus

Sui (SUI) is trading near a critical technical support level as bearish price pressure persists despite rapid growth across its decentralized finance ecosystem. 

As of Friday, January 30, SUI is hovering near the lower boundary of a descending price channel, a zone closely watched by traders for signs of either stabilization or further downside.

According to crypto analyst Ali, the latest price movements may indicate that selling pressure is easing, and buyers are stepping in to support the level. 

This is because a consolidation phase at the support of a descending channel is a potential inflection point for the asset. Therefore, it is a very important level for its next direction in an uncertain market.

Source: Ali X Post

If SUI is able to sustain above the current support level, the price may experience a relief bounce towards the $1.80 resistance area, which is also the midpoint of the channel. 

Breaking and sustaining above this level may allow the price to target the upper resistance of the channel around the $2.90 level. 

Failure to sustain the support level may see the price continuing to face downward pressure, with the bears maintaining control over the price momentum.

Also Read: SUI Volatility Rises as TVL Surpasses $920M and Support Levels Tighten

Technical Indicators Signal Continued Bearish Control

According to data from TradingView, as of Friday, January 30, SUI appears to be stuck in a correction period due to its inability to rise above the Ichimoku Cloud. 

This is because the price continues to stay below the Kumo, and the Tenkan-sen and Kijun-sen slopes are both trending downwards. There have also been rejections at the price range of $1.50 to $1.64, which have established this price range as a resistance zone.

Source: TradingView

Momentum indicators also reinforce the downside bias. The Relative Strength Index is currently around 29. This puts the asset in the oversold zone. The selling pressure on it has been strong. 

The MACD indicator is still negative, as the MACD line and the signal line are still below zero. The histogram is also declining. A major trend change may require the token to move back to the Ichimoku cloud. If SUI does not manage to stabilize, it may fall to the $1.10 support.

Sui TVL Surpasses $2B as Privacy-Focused DeFi Expands

Despite the short-term price pressures, the on-chain strength of Sui continues to improve. The Sui blockchain has now surpassed the $2 billion TVL mark, doubling its TVL within a period of 90 days.

This makes the blockchain one of the fastest-growing Layer 1s. Data highlighted by Altcoin Buzz on Friday, January 30, showed the increase in TVL was a result of an increase in DeFi participation.

One major contributor to this growth is Sui’s protocol-level zero-knowledge privacy solution, which offers private, confidential, and transparent transactions. This helps in addressing the issues of financial institutions regarding transparency. 

With increased global regulation of digital assets, the asset’s solution is now being perceived as a new opportunity for financial institutions such as banks and funds to enter financial services in a blockchain environment.

Also Read: SUI Slips to $1.30: Power Moves in ETF Market Could Spark $1.70 Bounce