SUI and SEI Hit Key Support Levels Amid Significant Correction: What To Expect Ahead?

Date: Sat, Jan 25, 2025, 02:05 PM GMT

In the cryptocurrency market, the correction that began last month continues to impact altcoins. While Bitcoin (BTC) has recorded gains of over 9% in the last 30 days, this rally has been accompanied by a rise in BTC dominance, surging from the January 4 low of 56.63% to the current level of 58.93%.

This rise in dominance has applied significant bearish pressure on altcoins, leading to steep corrections in many tokens, including Layer-1 tokens Sui (SUI) and Sei (SEI).

Source: Coinmarketcap

Both tokens are now trading at critical support levels, and their next moves could be pivotal in determining their short-term direction.

Sui (SUI)

SUI has recently broken down from its ascending parallel channel support at $4.53 and failed to hold the 50-day Moving Average (MA) on the daily timeframe. The pullback has dropped the token to its current price of $4.13, placing it within a crucial support zone between $4.00 and $4.18.

Sui (SUI) 1D Chart/Coinsprobe (Source: Tradingview)

The MACD (Moving Average Convergence Divergence) indicator shows weakening momentum but still suggests room for consolidation before a potential bullish crossover. If SUI manages to hold this support and the MACD confirms a bullish crossover, the token could aim for a recovery toward its immediate resistance level at the 50-day MA.

However, if the $4.00 support fails to hold, SUI could see a decline to its next major support level at $3.50.

Sei (SEI)

SEI remains confined within a descending parallel channel, reflecting a broader downtrend that began after its March 2024 peak near $1.14. The recent decline from $0.73 to $0.34 places SEI within a critical demand zone between $0.33 and $0.41. Historically, this zone has provided strong support and has been a launchpad for rebounds.

Sei (SEI) 1D Chart/Coinsprobe (Source: Tradingview)

The MACD indicator for SEI shows signs of potential stabilization, suggesting that the token may attempt to consolidate within this demand zone. If SEI holds this support, it could aim for a recovery toward its 200-day MA, which currently serves as a key resistance level.

However, a failure to maintain support at $0.33 could see the token drop to its next support level at $0.2650.

What To Expect Ahead?

Both SUI and SEI are positioned at pivotal support levels, and their ability to hold these zones will determine their short-term direction. While the immediate outlook hinges on these critical supports, the long-term view remains optimistic.

As highlighted in a todays analysis by crypto trader @cas_abbe , the chart for the total cryptocurrency market cap (excluding Bitcoin) has formed a Golden Cross—a bullish signal that historically precedes altcoin seasons.

Source @cas_abbe (X)

If this trend holds, altcoins like SUI and SEI could experience significant growth, potentially testing key resistance levels in the coming months.

Final Thoughts

The coming days will be crucial for both SUI and SEI as they navigate these key support levels. Investors should closely monitor price action and technical indicators, such as MACD and moving averages, to assess potential recovery opportunities.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions in cryptocurrencies.