Home Altcoins News SUI Faces Bearish Pressure, Potential 35% Price Drop Ahead

SUI Faces Bearish Pressure, Potential 35% Price Drop Ahead

Sui Price Drop

SUI, the native token of the Sui blockchain, has entered a bearish phase amid the ongoing downturn in the cryptocurrency market. Technical indicators suggest that the asset could face a significant decline, with a potential drop of as much as 35% from its current price levels. This shift comes after SUI failed to maintain its support level along an ascending trendline, which has been a key indicator of its price stability for an extended period.

Currently priced at around $3.66, SUI has seen a sharp decline of over 8.5% in the last 24 hours. The decrease in trading volume by 55% further emphasizes the waning interest from traders. This drop in market activity, coupled with the asset’s failure to maintain crucial support levels, has fueled concerns about the possibility of further price deterioration.

Key Technical Indicators Suggest Further Declines

One of the primary technical signals pointing toward a bearish outlook for SUI is its inability to stay above the $4 mark. This price point had previously acted as an important resistance level, and its breach downward suggests that the market is not showing enough strength to support further upward movement. The Relative Strength Index (RSI) for SUI has now dropped to 35.5, indicating that there is room for the token to decline further before reaching oversold conditions.

Historical price patterns and recent trends suggest that SUI might head towards the $2.30 level, marking a potential 35% drop from its current value. If this support level fails to hold, SUI could see further declines, possibly even reaching lower price points. This bearish sentiment is compounded by the overall market downturn, with Bitcoin and other major cryptocurrencies also facing pressure.

On-Chain Data Signals Possible Accumulation

Despite the overall bearish market sentiment, some positive on-chain data suggests that long-term holders are accumulating SUI. According to data from Coinglass, there has been an outflow of more than $18.5 million worth of SUI from exchanges. This suggests that large investors may be positioning themselves for future gains, which could provide a buffer against further price declines.

The outflow of tokens from exchanges typically signals that investors are moving their holdings to private wallets, indicating a long-term bullish outlook. This could serve as an indication that the current dip might present an opportunity for strategic investors to buy in at lower prices, betting on future price recovery. However, this accumulation activity remains a contradiction to the prevailing bearish sentiment, and the overall market trend will likely have a significant influence on SUI’s future price action.

Short-Term Liquidation Levels and Risks

For short-term traders, the liquidation levels for SUI are crucial to monitor. Current levels are identified at $3.56 on the lower side and $3.85 on the upper side. These levels represent areas where traders might face liquidation if the price moves aggressively in either direction. The over-leveraged positions in these ranges could trigger a cascade of forced sell-offs if the price continues to decline.

While the longer-term outlook for SUI might present opportunities, the current technical indicators and market sentiment suggest that caution is essential for both traders and investors. A break below the $3.56 level could accelerate the downward trend, while a push above the $3.85 level might help stabilize the token, at least temporarily.

Conclusion

In conclusion, SUI’s current price action shows signs of a potentially steep decline. With technical indicators pointing to a bearish outlook and key support levels failing to hold, the token could experience a 35% drop in the near future. However, the on-chain data showing accumulation by long-term holders suggests that there may be opportunities for those willing to bet on SUI’s eventual recovery. As always, investors should carefully consider both short-term and long-term factors before making decisions, as the cryptocurrency market remains volatile.

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James

James T, a passionate crypto journalist from South Africa, explores Litecoin, Dash, & Bitcoin intricacies. Loves sharing insights. Enjoy his work? Donate to support! Dash: XrD3ZdZAebm988BfHr1vqZZu6amSGuKR5F

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