SUI Price Signals Bearish Breakdown as Bear Flag Takes Shape 

• SUI price plunged from $1.08 to $0.97 in the last 48-hours, signaling a potential breakdown from the bear flag support.
• Comments from Jerome Powell on persistent inflation triggered a risk-off environment in risky assets including cryptocurrencies.
• The momentum indicator RSI (Relative Strength index) dropped to 50% indicate a neutral market sentiment

SUI, the native cryptocurrency of the SUI blockchain, is down roughly 4% down to trade at $0.92. The primary catalyst to this pullback came from macroeconomic development as hotter-than-expected U.S. inflation data and a cautious Federal Reserve, triggered a correlated sell-off across risk assets. As the inflow into the DeFi services remains sluggish, the SUI price struggles to drive a sustainable recovery.

Crypto Faces Risk-Off Wave After Powell’s Inflation Warning

On March 18th, the crypto market witnessed a notable sell-off which pulled its market cap to $2.44 trillion. A similar drop was recorded in Bitcoin (-4.22%) and Ethereum (-5.66) as the Fed decision to keep interest rates steady at 3.50%-3.75%, and Chair Jerome Powell note on inflation press triggered a risk-off sentiment among market participants.

The sharp price drop in digital currencies triggered cascading liquidation of leveraged long positions. According to Coinglass data, over 136,067 traders were force liquidated which wiped out $452.36 million within the 24-hour period.

SUI’s token price has been trading within a narrow range recently, exhibiting low directional movement or volatility. At the same time, the blockchain’s DeFi ecosystem displayed signs of revived activity with a partial rebound in locked capital. Figures from DeFiLlama show total value locked (TVL) has increased from $542 million to $664 million in the last two weeks or so, representing a jump of some 22.5%.

This uptick in TVL reflects increased user deposits and engagement in Sui’s decentralized protocols and in many cases is seen as a good sign of increasing trust, liquidity, and overall adoption in the network’s lending and trading and yield generating applications – even though the native asset’s market performance has remained subdued and sideways. Leading protocols such as Suilend and NAVI have helped significantly in the current TVL base of around $600 million.

Bear Flag Pattern Set SUI Price For Major Breakdown

Over the past six weeks, the SUI price has traded in a sideways trend below $1.1, along with a short upward incline in the daily chart. A deeper analysis of the technical chart shows the price consolidation has been resonating with two pattern trendlines, signalling a classic bearish continuation pattern called inverted flag.

The chart setup is characterized by a well-declining slope, indicating the dominant bearish trend in the market, followed by a temporary rising channel which allowed sellers to recoup the bearish momentum.

A declining trend in daily exponential moving averages (50, 100, and 200) further reinforces the prevailing bearish momentum in price and offers dynamic resistance to coin price. With today’s market drop, the SUI price showed another reversal from the pattern’s resistance trendline, signaling a risk of another 7% drop to challenge the flag support.

A bearish breakdown from the bottom trendline will accelerate the selling pressure and drive a 14.5% drop to $0.79 support, followed by $0.57.