SUI, the native token of the Layer-1 blockchain Sui, recently reached an all-time high of $2.36 on October 12. However, a surge in selling pressure has halted the token’s upward trajectory. As the bullish momentum weakens, the cryptocurrency is now showing signs of a potential 19% price decline, raising concerns among investors.

Bearish Reversal Looms for SUI

Since reaching its recent high, SUI has been struggling to maintain bullish momentum. The token has now slipped below the key support line, signaling a bearish reversal. SUI’s drop below the lower boundary of the rising parallel channel that it traded within for over a month indicates that sellers have begun to take control.

A parallel channel is formed when an asset’s price moves between two upward-sloping trendlines, signaling a bullish trend. When the price drops below the lower trendline, it’s often a sign that the asset’s upward momentum has weakened, and a bearish reversal is underway. This is exactly what has happened to SUI, where buyers could no longer maintain the bullish trend, and sellers are now pushing prices lower.

Aroon Indicator Hints at Further Weakness

In addition to the break below the parallel channel, the Aroon indicator—which tracks the strength and direction of a trend—confirms the bearish outlook for SUI. The Aroon Up Line, a key component of this indicator, has dropped to 21.43%, indicating a weakening bullish trend. Typically, a reading this low suggests that the uptrend is losing steam and that a downtrend could be on the horizon.

This declining Aroon reading reinforces the idea that SUI’s bullish phase is coming to an end. As sellers continue to dominate, the possibility of further price declines becomes more likely.

Price Prediction: What Lies Ahead for SUI?

Currently, SUI is trading at around $2.02, down from its previous support level of $2.30. The next critical support lies at $1.91, and if this level fails to hold, SUI could be in for a steeper decline, potentially dropping to $1.64. A drop to $1.64 would represent a 19% decline from its current price, signaling a substantial bearish move.

If SUI’s price breaks below $1.64, the next major support level is at $0.87, which would result in a more drastic price drop. Such a fall would likely shake investor confidence, causing more traders to sell off their holdings, further accelerating the downward spiral.

Bulls Must Act to Avoid Further Decline

Despite the prevailing bearish sentiment, all hope is not lost for SUI. A surge in demand for the token could invalidate the bearish outlook. If buyers step in and push SUI’s price back above the critical support level of $2.30, the token could regain its upward momentum.

In such a scenario, SUI’s price might aim to reclaim its previous high of $2.36 and possibly move beyond that level. For bulls to regain control, a significant influx of buyers would be required to shift market sentiment back in favor of a rally.

Will SUI Rebound?

The current situation for SUI paints a picture of a bearish reversal, with key support levels failing and the Aroon indicator pointing to a weakened bullish trend. If the price continues to fall and breaks through the $1.91 and $1.64 levels, SUI could be in for a significant decline. However, a demand surge could prevent this outcome and set the stage for a potential recovery.