- SUI forms a bullish inverse head and shoulders but struggles to break above $2.52.
- Bearish momentum dominates as funding rates and liquidations signal short-term seller control.
Sui [SUI] is currently forming an inverse head and shoulders pattern, a classic bullish reversal signal that typically emerges after extended downtrends.
The price has bounced from the $2.20 support zone, with the left and right shoulders aligning near $2.25, reinforcing a strong demand level.
However, despite this technical setup, SUI has struggled to build momentum above the $2.52 neckline—an essential resistance that must break to confirm the pattern.
At the time of writing, SUI traded at $2.22, down 8.73% in the past 24 hours, suggesting that sellers remained in control.
Unless bulls reclaim control and push the price above $2.52 with strong volume, the risk of further downside remains elevated.
Source: TradingView
From a broader perspective, the daily chart offers mixed signals. The MACD is slowly curling upward, indicating a possible shift in momentum, though it still hovers in bearish territory.
Additionally, Fibonacci retracement levels highlighted a major support zone between $2.16 and $2.22, which SUI was testing at press time.
However, failure to hold above this level could expose the price to further downside toward the 1.618 Fib extension at $1.42. Therefore, a move above $2.52 is crucial to shift momentum in favor of the bulls.
Source: TradingView
Are bulls or bears dominating liquidations?
Liquidation data from the 3rd of April showed a clear imbalance between long and short positions. Long liquidations hit $1.92 million, significantly outweighing short liquidations, which totaled $675.78K.
This suggested that bulls have been overexposed, and recent price drops may have flushed out weak hands. However, the surge in long liquidations might also indicate that the market has reset, giving room for stronger hands to re-enter.
Source: Coinglass
What does the Funding Rate say?
The OI-Weighted Funding Rate recently turned slightly negative at -0.0056%, showing that short positions were dominant at press time. This shift favored bears and highlighted the cautious sentiment among traders.
However, the Funding Rate remained close to neutral, signaling indecision and waiting for a confirmed breakout or breakdown. Sentiment could flip rapidly if price action confirms a breakout above $2.52.
Source: Coinglass
Conclusion
SUI remains under strong bearish momentum despite the bullish reversal potential shown by the inverse head and shoulders pattern.
The price has yet to break and hold above the $2.52 neckline, which is the critical confirmation level for a trend reversal.
Until that happens, sellers continue to dominate the short-term outlook, and downside risk toward the $2.16 or even $1.42 level still lingers.
Therefore, a bullish reversal is not yet likely—confirmation above $2.52 is essential before any bullish scenario can be considered reliable.