- Sui forms a bullish inverse head and shoulders, but is struggling to break above $ 2.52.
- Beerarish Momentum dominates because financing speeds and liquidations signal in the short term sellers’ check.
Sky [SUI] is currently a reverse head and shoulder pattern, a classic bullish reversal signal that usually comes forward after extensive downward trends.
The price was bounced from the $ 2.20 support zone, with the left and right shoulders in line with almost $ 2.25, which strengthens a strong demand level.
Despite this technical setup, however, Sui has difficulty building momentum above the $ 2.52 neckline – an essential resistance that must break to confirm the pattern.
At the time of writing, SUI has been trading for the past 24 hours at $ 2.22, a decrease of 8.73%, suggesting that sellers have kept control.
Unless bulls reclaim check and push the price above $ 2.52 with a strong volume, the risk of further downward disadvantage remains increased.
Source: TradingView
From a broader perspective, the Daily Chart offers mixed signals. The MacD is slowly curling up, indicating a possible shift in Momentum, although it is still floating in Bearish territory.
In addition, Fibonacci racement levels emphasized an important support zone between $ 2.16 and $ 2.22, which SUI tested at the time of the press.
However, not retaining above this level can expose the price to further down to the 1,618 FIB extension at $ 1.42. That is why a movement above $ 2.52 is crucial to shift the momentum in favor of the bulls.
Source: TradingView
Are bulls or bears that dominate liquidations?
Liquidation data from 3 April showed a clear imbalance between long and short positions. Long liquidations reached $ 1.92 million, which weighed considerably heavier than short liquidations, which amounted to a total of $ 675.78k.
This suggested that bulls are overexposed and that recent price decreases may have washed away weak hands. However, the increase in long liquidations can also indicate that the market has been reset, so there is room for stronger hands to re -introduce.
Source: Coinglass
What does the financing percentage say?
The OI -weighted financing percentage has recently become somewhat negative at -0.0056%, which shows that short positions were dominant at the time of the press. This shift preferred bears and emphasized the cautious sentiment among traders.
The financing speed, however, remained close to neutral, signaling indecision and waited for a confirmed outbreak or breakdown. Sentiment could quickly turn around if a price promotion confirms an outbreak above $ 2.52.
Source: Coinglass
Conclusion
Sui remains under strong Bearish Momentum despite the bullish reversing potential that is shown by the inverted head and shoulder pattern.
The price still has to break and retain above the $ 2.52 neckline, which is the critical mounting level for a trend removal.
Until that happens, sellers continue to dominate it in the short term and the downward risk for the level of $ 2.16 or even $ 1.42 remains.
That is why a bullish reversal is not likely – improvement above $ 2.52 is essential before a bullish scenario can be considered reliable.