SUI Token drops to $1.41... signs of intensified bearishness

SUI( is currently trading at $1.41, recording a 24-hour decline of -1.72%. Looking at the price movement over the past 5 days, the psychological resistance level of $1.50, which previously held, has been completely broken. Beyond simple price adjustments, the market faces dual adverse factors—position liquidations + network liquidity reduction—happening simultaneously, increasing the likelihood of further declines.

Derivative Market ‘Position Liquidation Surge’…Rapid Reversal in Trader Sentiment

CoinGlass)CoinGlass( data reveals how serious the current situation is. The open interest)OI( in SUI futures has plummeted by about 10% in 24 hours, falling to $679.70 million. A decrease in OI is interpreted as a risk-off signal indicating that investors are actively unwinding leveraged positions, meaning market sentiment is shifting very quickly.

The liquidation data is even more straightforward. During the same period, long liquidations amounted to $3.14 million, and short liquidations to $89,210. This indicates that multiple positions betting on a rebound are being forcibly liquidated on a large scale, implying that traders expecting an upward move are being sequentially stopped out. Currently, the long/short ratio has dropped to 0.9238, making the short side more dominant.

On-chain Fundamentals Worsen…TVL and Stablecoin Market Cap Plummet

The on-chain situation is also negative. The total value locked (TVL) in the SUI blockchain has decreased by 3.30% in 24 hours, reaching $869.08 million. A decline in TVL signals capital outflows from DeFi protocols, indicating a slowdown in network activity.

Even more concerning is the market cap of stablecoins. Over the past week, it has experienced a sharp 25.72% drop. Since stablecoins are the fundamental fuel for all transactions, loans, and swaps within the blockchain, this decline suggests that “economic activity within the chain is significantly contracting.” As a result, a vicious cycle of price weakness + on-chain liquidity reduction is forming.

Technical Bearish Signals Accumulate…$1.3924 as Next Support

On the 4-hour chart, SUI has confirmed a downward breakout of the Descending Triangle pattern. After the $1.50 level was broken and failed to rebound, the “least resistance path” has clearly been set downward.

Currently, below the S1 pivot of $1.47, the next key technical support is the S2 pivot at $1.3924. This zone could serve as the first ‘defense line,’ but when selling momentum is strong as it is now, support levels often turn into ‘breakthrough’ points rather than holding.

Momentum indicators strongly support the bearish outlook. The 4-hour RSI has fallen to 28, entering oversold territory, and if RSI remains below 30, a prolonged downtrend is likely. The MACD remains in negative territory, with the downward momentum continuing to expand, indicating that bearish strength is intensifying.

Rebound Scenario…Conditional Possibility Remains

It’s not entirely hopeless. If SUI recovers back above $1.50, the $1.57 level, where the 50-period EMA is located, could serve as a short-term resistance. However, at this stage, the most critical point to confirm is whether SUI can reclaim $1.50. Failure to do so could lead to further declines toward $1.3924.