Sui enters the oversold zone—here’s why the bear market trend is not over yet

• Due to declining on-chain demand and derivatives interest, Sui continues to face significant selling pressure.
• Accelerated long liquidations are further tipping the balance in favor of short positions.
• If the price falls below $1.50, unless buyers reclaim key resistance levels, the market focus will shift to $1.39.

Sui as of press time on Tuesday, SUI remains under heavy pressure, with losses widening by about 1% and marking the third consecutive trading day of decline. This weakness is not an isolated phenomenon. On-chain demand is cooling, derivatives traders are retreating, and overall market sentiment remains strongly risk-averse. Taken together, these factors leave SUI’s price extremely vulnerable, with $1.39 likely to be the next support level closely watched by traders.

This is not a sudden crash. Selling has been steady and almost methodical, which often makes it difficult for buyers to confidently step in.

Retail and On-Chain Demand Both Begin to Weaken

Derivatives data shows traders are pulling out. Co on Glass reports that SUI futures open interest has dropped by nearly 10%. in the past 24 hours, open interest has fallen to about $679.7 million. When open interest contracts this sharply, it usually means positions are being closed rather than opened, a clear sign of reduced risk appetite.

The liquidation situation is similar. Long positions have suffered the most, with losses of about $3.14 million, while short positions lost only $89,000. Imbalance The long-short ratio has dropped to 0.92, which is bearish. Positioning A passive stance is starting to dominate. Long strength is being suppressed, which often further depresses prices.

On-chain indicators have offered little help. Sui’s total value locked. NetworkOak Over the past day, Sui stablecoin market cap fell 3.3% to $869 million, indicating users are withdrawing funds rather than injecting new capital. Liquidity is also declining, with Sui stablecoin market cap down more than 25% over the past week. Such a drop typically reflects a decrease in trading activity, not growth.

Falling Below $1.50 Will Change Technical Analysis Direction

On the technical side, Sui broke below the $1.50 mark after a sharp 5% drop on Monday. This move confirmed a bearish breakout from a descending triangle pattern on the 4-hour chart. As of press time, the price is trading below the S1 pivot point near $1.47, with downward momentum pointing toward the S2 pivot near $1.39.

Momentum indicators are consistent with this. Bearish observation. The RSI is near 28, deep in oversold territory. If the RSI stays below 30 for an extended period, it typically indicates sellers remain firmly in control of the market. The MACD is also sliding further into negative territory, further confirming that bearish momentum is strengthening rather than weakening.

What Could Change the Status Quo

For now, the path of least resistance keeps the price at low levels. However, markets rarely move in a straight line forever. If SUI can reclaim the $1.50 mark, it could open the door to a short-term rebound, targeting the 50-period moving average near $1.57. This would relieve some short-term pressure but would not erase broader losses. Overnight.

Until then, the structure remains fragile. Weak demand, shrinking liquidity, and aggressive long liquidations suggest Sui still has a lot of work to do before buyers can confidently return.