Despite a notable 6% drop in Sui price, surging daily inflows have caught the attention of the broader market. This paradox raises questions about Sui’s current state and whether the correction phase has concluded. An analyst has also warned against buying the hype, noting that the price of SUI could still drop another 20% before a bounce occurs.
Why Is Sui Price Crashing?
The price of SUI has been down 6% in the last 24 hours and is trading at $1.73 as of 3:52 a.m. EST. After being rejected at the $2.25 mark, the price took a bearish note. Traders noted this buyer exhaustion and began locking in profit, causing the price to drop further.
Price continues its downward moment despite Bitcoin showing strength and surging to $68,411. The entire crypto market is up 0.3% in the last 24 hours, hovering around $2.428 trillion.
Daily Inflow Surpasses Ethereum (ETH), Solana (SOL) and Base
Crypto analyst Kyle Chase shares how Sui is ‘going strong’, outperforming fellow decentralized networks in daily inflows.
OMG CHECK THIS OUT!! $SUI IS STILL GOING STRONG, TOPPING ALL OTHER CHAINS IN DAILY INFLOWS! pic.twitter.com/GuzYaFUxcB
— Kyle Chassé / DD🐸 (@kyle_chasse) October 28, 2024
This means users are moving funds from other chains to Sui, a bullish signal. During the three-month timeframe, SUI comes in third, beating Ethereum (ETH), Avalanche (AVAX), and Fantom (FTM), according to data from Artemis analytics.
This is one of the on-chain metrics that supports an SUI price reversal narrative. Additionally, Sui provided a timeline for fixing their staking distribution problem, which could cause price action to reverse.
Will SUI Drop Another 20%?
A top trader predicted that SUI is about to extend losses by 20% and drop to the $1.3-$1.36 range. This is after the asset hit an all-time high of $2.35 two weeks ago, with its market cap reaching over $6 billion for the first time.
The SUI 24-hour trading volume has surged by 12.2%, suggesting a recent rise in market activity per Santiment data. When volume is rising, but the price is falling, it often indicates strong selling pressure in the market.
Additionally, the crypto derivative visual screener from Coinglass shows traders are closing their SUI Long positions in Loss. When this happens, they tend to enter Short positions, which indicates that the SUI price may continue dropping over the coming days, or at least until it reaches a strong support level.
Technical analysis suggests that the price will eventually bounce back, but not before a potential 8-20% extended dip.
SUI Price Analysis: Is the Correction Over?
The Sui chart shows the crypto asset is still bullish since it trades above the 20-day exponential moving average (EMA). This key indicator is a major support for financial assets, and as long as price action is above it, investors can rest easily.
Currently, the 200 EMA lies around $1.44, which means the price is likely to drop to that level. This support coincides with the 61.8% Fibonacci retracement level around $1.36.
Candlestick patterns at the current price suggest bulls are trying to sustain the price above the $1.74 mark (38.2% fib levels), although the selling pressure is high.
Key support levels to watch out for include $1.74, $1.44, and $1.36.
Bulls can invalidate this bearish thesis by pushing the price above $2.36 and establishing new all-time highs for the asset.
Sui’s price is overall bullish but is currently in a pullback as investors take profit. This is perfectly natural and could result in a more aggressive upward movement after the dip.
Frequently Asked Questions (FAQs)
The price of Sui has dropped 6% due to a combination of factors, including rejection at the $2.25 resistance level and profit-taking by traders.
Investors should monitor support levels at $1.74, $1.44, and $1.36. These levels are crucial as they may indicate where buying interest could emerge to counteract selling pressure.
Yes, Sui is still considered bullish in the long term as it trades above the 200-day exponential moving average (EMA).
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/sui-price-drops-6-despite-surging-daily-inflows-is-the-correction-over/
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