TVL And Sui Price Drops More than 50%

Sui price has been in a strong downtrend,forming lower lows since the formation of annual high at $2 level on May 3. The cryptocurrency price has declined roughly 70% from the all time high of $2. The price recently found stability after rejection $0.51 level on June 10.

Since the end of June, Sui price has been correcting the bullish move which occurred during the middle of June. During July 18, price attempted to retest the high and initiated a bullish journey which was due to the surge in activity, mainly due to its new web3 game, SUI 8192.

Recently, price broke the support level of $0.60 and closed below it providing slight confirmation regarding a move to the downward. The previous two candle closed with small bodies indicating low volume and facing rejection from the downwards.

The current candle has broken the high of the previous candle and again entered into the previous zone. If the current candle is successful in closing back above $0.60, price might rise toward the resistance level of $0.65.

On the other hand, if a candle is successful in closing below $0.59 level, there is possibility that price might fill the lower wick of June 10 candle and melt toward $0.51.

Network Activity Of SUI

The daily active addresses surged during July 18 and peaked at 478,400 since then there has been a strong decline. The DAA has declined 8.5% in past 30 days reaching to 53,651.

The daily transaction of SUI reached 65.84 million on July 27 which was a strong rise and in last three months, there has been a increase of 300% in daily transactions. However, currently daily transaction have dropped to 1,483,913. The total value locked has also taken a strong hit and has dropped 58.5% to $14.9 million.

Will SUI Price Drop To $0.51 level ?

The cryptocurrency price has slipped below 20 and 50-day EMAs, indicating rise in bearish momentum. Chaikin money flow score has been trading below 0 mark since 9 July and currently is at -0.18 indicating strong weakness in the market.

The relative strength index is 36.06 suggesting a bearish momentum in the price. The bands of bollinger have started to expand implying rising volatility. The price reached the lower band of bollinger and showing signs of bullishness.

Conclusion

The market structure and price action of SUI has turned bearish after the break of $0.60 level. However, the current candle is attempting to re-enter the previous consolidation zone. Technical indicators suggest that price possesses bearish momentum.

Technical levels

Major support: $0.51 and $0.45

Major resistance: $0.65 and $0.74

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.