SUI price has grown by 27.82% in the last 30 days, driven by notable changes in its Total Value Locked (TVL). After a strong surge in both TVL and price, SUI appears to be entering a consolidation phase. This stabilization suggests a pause in the upward momentum, possibly indicating a period of market indecision.
The future direction could depend on whether SUI’s TVL sees renewed growth or remains stagnant, with a potential correction in play.
SUI TVL: Consolidation After a Strong Surge
SUI’s Total Value Locked (TVL) experienced an impressive surge, rising from $308 million on August 4 to $1.096 billion by October 14. This remarkable 255% growth over roughly two months stands out, especially for a protocol as substantial as SUI.
This growth was accompanied by a significant increase in SUI price itself, climbing from $0.46 to $2.36. That represents a staggering 391% growth in the same period.
However, following that surge, SUI’s TVL has shown signs of stability, consistently hovering around $1 billion without further gains since early October.
This plateau suggests that after the sharp rise in both TVL and price, SUI might be transitioning into a consolidation phase or potentially even gearing up for a correction, as the rapid growth appears to have cooled off.
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SUI ADX Shows the Current Downtrend is Still Not That Strong
SUI’s ADX is currently at 16.82, indicating the strength of the current trend. With a value below 20, this suggests that the trend is still weak, implying limited directional movement in the market.
The ADX is a valuable indicator as it helps gauge the momentum of a trend, whether upward or downward.
The ADX (Average Directional Index) values are generally used to determine how strong a trend is, with numbers between 20 and 40 signaling moderate strength and anything above 40 showing a very strong trend. Just two days ago, SUI’s ADX was at 9, showing a noticeable increase recently.
As SUI seems to be heading into a downtrend, a continued rise in ADX would imply a strengthening bearish momentum, which could lead to a significant correction in the next few days.
SUI Price Prediction: Will SUI Form a Death Cross Soon?
SUI’s EMA lines currently indicate that its short-term averages are trending downward and could soon cross below its long-term averages. This is often referred to as a “bearish crossover,” which suggests that bearish momentum may be gaining strength.
Such a crossover can indicate the beginning of a potential downtrend as short-term price sentiment weakens compared to the longer-term outlook.
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If this bearish crossover occurs, SUI has support levels at $1.74 and $1.60, pointing to a potential correction of up to 17%. On the other hand, if SUI’s Total Value Locked (TVL) starts to grow again and sparks a renewed price rally, the price could test resistance at $2.16.
Should that level be broken, SUI could also test $2.36, which would represent a possible 21% price increase.
Disclaimer
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Source: https://beincrypto.com/sui-price-weakens-tvl-plateau/