The Sui (SUI) token has experienced a significant downturn, extending its losses for a fifth consecutive day with a roughly 10% drop on Friday. This prolonged decline signals a noticeable decrease in retail investor engagement, as the broader cryptocurrency market appears to be re-evaluating its focus away from underperforming layer-1 blockchain assets. Technical analysis suggests a potential for SUI to breach a key psychological level, with a risk of further depreciation toward the $1.00 mark.

Evidence of weakening sentiment is also apparent in the derivatives market. Open Interest (OI) for SUI futures contracts saw a substantial reduction of 10.5% over the past 24 hours, settling at $727.97 million. This drop reflects a decrease in the total value of outstanding contracts. During the same period, approximately $7.2 million worth of positions were liquidated, with a dominant portion—around $7 million—stemming from long positions, underscoring intense selling pressure currently dominating the market.

From a technical standpoint, the four-hour chart for SUI/USD presents a distinctly bearish picture. The token is currently trading below its 50-period Exponential Moving Average (EMA) at $1.1558 and has slipped beneath the lower Bollinger Band at $1.1442, indicating a strong short-term bearish bias. While SUI remains above the 200-period EMA at $1.0270, suggesting that the broader recovery structure might still be somewhat intact, momentum indicators paint a grim outlook. The Relative Strength Index (RSI) has fallen to 46, below the midline, and the MACD histogram remains in negative territory, collectively implying that any upward movements are likely to encounter significant selling resistance.

Should the current bearish trend persist, SUI investors will be watching critical support levels closely. The first major support is identified at the 200-day EMA at $1.0270, followed closely by the 78.6% Fibonacci retracement level at $0.9972. A sustained break and daily close below this crucial $1.00 threshold could pave the way for SUI to revisit its previous cycle low near $0.8815. Conversely, if bullish momentum were to re-emerge, initial resistance could be found around $1.2171, with further upside potential towards the upper Bollinger Band near $1.2900 and the 23.6% Fibonacci retracement at $1.2947. However, the prevailing technical structure points to deteriorating momentum, urging traders to carefully monitor both spot and derivatives markets for definitive signs of either further downside or potential relief rallies.