Will SUI Hold Above $4 to Avoid a Breakdown toward the $3.50 Demand Zone?

Amid growing volatility in the crypto market, SUI struggles to maintain its price above the $4 psychological mark. This critical level serves as a key battleground

As the crypto market experiences heightened volatility, SUI's price struggles to maintain its position above the critical $4 level in a battle between bulls and bears. After a bearish Sunday, SUI's price hovers around the $4 mark.

With a market cap of $12 billion, SUI ranks as the 15th largest cryptocurrency. However, the increasing bearish pressure signals the potential for a quick drop below the $4 level, keeping traders on edge as this psychological threshold faces repeated tests.

On the 4-hour chart, the SUI price trend reveals a price correction phase. The pullback forms an expanding channel pattern within two crucial zones, highlighting the ongoing tug-of-war between buyers and sellers.

The demand zone lies just below the $3.50 mark, extending from $3.48 to $3.44. On the upside, the supply zone spans from $4.80 to $4.85. The current pullback phase has resulted in a nearly 18% drop from the all-time high. Now, SUI is testing the 200 EMA line. This key support level could play a crucial role in determining the next price movement.

Moreover, the growing bearish pressure has caused a negative crossover between the 50 and 100 EMA lines. Currently, SUI's price faces resistance from the trend line, struggling to break out to the upside. The rejection highlights the strength of the bearish forces at play.

With the price rejecting higher levels, the altcoin will likely close below the 200 EMA line, increasing the likelihood of a retest of the support trend line near the $3.65 mark. Such a move could attract further selling pressure, deepening the correction.

On the bullish side, a breakout above the expanding channel pattern could challenge the overhead supply zone. A decisive breakout here may reignite optimism among traders.