SUI Drops for 5 Consecutive Days; If the $1.15 Support Line, Even Whales Have Abandoned, Breaks, Will $1 Collapse?

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SUI is experiencing a five-day continuous decline due to large-scale long position liquidations in the derivatives market and a sharp drop in demand from individual investors, leading to pessimistic forecasts that it could retreat to the psychological bottom line of $1.00.

According to investment media FXStreet on May 15 (local time), SUI has fallen by approximately 3% as of Friday, undergoing a total price correction of 14% this week alone. As market interest shifts away from less-watched Layer-1 tokens, buying interest from individual investors has noticeably decreased. This bearish trend is also evident in the derivatives market, where SUI's open interest, according to CoinGlass data, decreased by 4% over the past 24 hours to $744.12 million. This suggests that the notional value of open contracts has sharply declined, indicating a lack of investor interest.

Position liquidation data confirms the overwhelming dominance of selling pressure. Of the approximately $3.13 million in liquidations that occurred over the past 24 hours, $2.71 million was concentrated in long positions that had bet on a price increase. This acts as a cascading selling pressure that exacerbates further declines when prices fall, putting pressure on the market price. Experts warn that if this position unwinding is not completed, additional downside volatility may occur.

From a technical analysis perspective, SUI is currently navigating a very precarious zone. On the 4-hour chart, it is undergoing a challenging test of support around the 50-period Exponential Moving Average (EMA) at $1.1558 and the lower Bollinger Band at $1.1442. The Relative Strength Index (RSI) has fallen to 40, below the neutral line, indicating strong selling pressure, and the Moving Average Convergence Divergence (MACD) histogram also remains in negative territory, suggesting a high likelihood of facing a barrage of selling whenever it attempts to rebound.

The future direction of the price depends on whether the 50% Fibonacci retracement level around $1.1519 can be defended. If this support line breaks, there is a possibility of a double-digit decline, plummeting past the 200-day EMA at $1.0270 to the 78.6% Fibonacci level at $0.9972. Conversely, if it successfully rebounds from its current position, it could attempt to recover to the $1.2900 level, passing through the Bollinger Band midline at $1.2171, but the overall momentum has already significantly shifted downwards.

In conclusion, SUI is at a critical inflection point as its structural recovery falters. Although the 200-period EMA is still holding below, meaning the overall recovery structure has not completely collapsed, it appears insufficient to reverse the rapidly deteriorating investor sentiment. Investors should exercise caution, being mindful of the possibility of a 'flash crash' towards $1.00 if the $1.1519 support line breaks.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*