Sui [SUI], the native token of the Sui Layer 1 blockchain developed by Mysten Labs, recorded a 5% price decline over the past 24 hours, accompanied by a 9.6% increase in daily trading volume — a combination that pointed to rising short-term selling pressure.

The broader cryptocurrency market also posted losses over the same period. Bitcoin [BTC] and Ethereum [ETH] fell 1.05% and 1.14%, respectively. Against these market leaders, SUI was underperforming in the near term.

Coinbase Staking Announcement Fails to Reverse Downturn

The pullback came despite a potentially bullish development. Coinbase announced that SUI can now be staked directly on the exchange, with staking rewards accruing directly to users' accounts. The feature was positioned as a streamlined way for holders to earn rewards without managing their own staking infrastructure. (X post)

Direct exchange staking typically lowers the barrier to participation in network validation, potentially broadening the staker base. However, whether increased staking adoption translates into sustained demand for the token remains a separate question from short-term price action.

Analyst Trader Ted noted that the Coinbase announcement could serve as a catalyst to help SUI break above the descending trendline resistance that has been in place since early June. The token has so far held the $0.66 support zone. According to the trader, a period of consolidation followed by a bullish breakout remained a viable scenario.

Technical Indicators Paint a Mixed Picture

The swing low at $0.65, established in June, marked the low of the current swing structure. On the 1-day timeframe, the Relative Strength Index (RSI) — a momentum oscillator that measures the speed and magnitude of price movements on a 0–100 scale — had recently moved above the neutral 50 level, but losses over the past three days pushed the momentum indicator lower again.

The On-Balance Volume (OBV), which cumulatively tracks volume flow to gauge buying versus selling pressure, remained in a downtrend, although selling pressure showed signs of easing in July. A rally toward the $1.12–$1.25 region — the Fibonacci golden pocket, a zone derived from key Fibonacci retracement levels often watched by technical traders — was technically possible, though this scenario had yet to materialize.

Range-Bound Trading in Focus

Throughout July, SUI has traded within a $0.70–$0.77 range. The RSI on the 4-hour chart entered oversold territory — typically a reading below 30 — as the token approached the range lows, which some traders viewed as a potential buying opportunity. However, a confirmed breakout above the $0.82 local resistance zone was cited as a stronger buy signal for swing traders. Conversely, a breakdown below $0.65 would signal that the next bearish impulse move was likely underway.

Key Takeaway

The Coinbase staking news effectively functioned as a sell-the-news event. While the $0.70–$0.77 short-term range may offer trading opportunities, the $0.82 supply zone remains a critical level to watch.