SUI, the native token of the Sui blockchain, has been hit hard with a sharp 30% price decline in recent weeks, triggering growing skepticism and leading to significant outflows. Investors have reacted to the altcoin’s uncertain short-term outlook, with many pulling their funds amid volatile market conditions.

Despite these challenges, SUI has managed to maintain its position above a crucial support level of $2.00, providing some hope for recovery. However, the broader market sentiment remains cautious, and the price may face additional pressure if these bearish conditions persist.

Rising Outflows and Skepticism Among Traders

The ongoing decline in SUI’s price has raised significant short liquidations in the futures market, with $12 million worth of positions being liquidated in just one day. This marks the highest short liquidation level seen in the past two months. The spike in liquidations highlights the growing pessimism among traders, many of whom were forced to exit their positions as the market continued to slide.

The liquidations reflect the broader challenges traders are facing, as the bullish momentum that many had hoped for failed to materialize. With market sentiment turning increasingly negative, buying activity has slowed, further dampening the chances of a swift price recovery for SUI.

Chaikin Money Flow Indicator Signals Bearish Sentiment

The Chaikin Money Flow (CMF) indicator, which tracks the balance between capital inflows and outflows, has been signaling increased skepticism about SUI’s price direction. Currently sitting below the zero line, the CMF suggests that more capital is leaving SUI than entering it, indicating a lack of investor confidence in the asset’s immediate prospects.

As the CMF continues to dip, it reinforces concerns that the altcoin may struggle to gain upward momentum in the short term. The ongoing outflows reflect an overall hesitation among investors, making it more difficult for SUI to break through key resistance levels or reverse its recent losses.

SUI’s Price Outlook: Key Levels to Watch

SUI’s price is currently at $2.04, down 30% over the past ten days. While the asset has shown some resilience by holding above the $2.00 support level, the overall market sentiment remains bearish. If the negative trend continues, SUI could see a further decline, with $1.75 acting as the next major support level.

However, if the altcoin manages to hold above the $2.00 mark and secure support at $2.22, it could potentially gain momentum and push past the critical resistance levels at $2.47 and $2.77. A successful breakout above these levels would negate the current bearish outlook and could signal a return to growth for SUI.

Conclusion: What’s Next for SUI?

As SUI continues to grapple with a 30% decline, the market’s uncertainty and outflows suggest that the altcoin’s recovery may take time. While the $2.00 support level offers some hope, sustained bearish sentiment and a lack of buying pressure could limit any immediate price upside.

Investors will need to closely watch key support and resistance levels, particularly the $2.22 and $2.47 thresholds, to gauge whether SUI can break free from its recent slump. If the broader crypto market experiences a shift toward bullish conditions, SUI may have the chance to regain its footing and push higher. However, for now, skepticism remains high, and traders should remain cautious as the asset navigates a volatile landscape.