Sui price delivered one of the best performances in the past month. However, over the past week, the asset has displayed signs of buyer exhaustion as it hit a critical resistance level and a new all-time high. After rising 182% from the beginning of September, SUI has retraced 16%. But is this just a retrace or a full-blown correction?
The United States CPI released yesterday came in slightly higher than expected, causing the crypto prices to drop as BTC slid below $60,000. This further affected SUI negatively, adding to the already precarious position the token is in.
Exchange Netflows Signal Sui Price Correction
Data from Coinglass shows high SUI exchange inflows for the past two consecutive weeks, suggesting that holders have possibly been sending the coins to exchanges to sell. Coinbase and Binance received most of the coins, totaling $15 million and $12.55 million, respectively. Coincidentally, the Sui price began to show weakness on October 7, followed by a price decline over the following days.
This heavy inflow of coins has spooked traders as it is a bearish signal. The market sentiment on SUI is slowly turning bearish, as the Coinglass Crypto Derivative Visual Screener shows. Both the changes in the price of SUI and its open interest turned out to be negative, suggesting that traders are closing their long positions in losses after failing to lock in profits at the top. When this happens, traders tend to open shorts, which further signals that the SUI price may drop lower.
This observation is further exacerbated by the Coinglass Liquidation Map, which shows the Cumulative Short Liquidation Leverage was larger than the corresponding Longs. This imbalance shows bearish sentiment is dominating SUI market because traders anticipate further downside potential for the asset.
The price of SUI is down 4% in the last 24 hours and is trading at $1.80. Technical analysis for SUI points to the possibility of a 40% crash in the coming days if the market conditions remains the same.
Sui Price Analysis: Will SUI Crash to $1?
The SUI price 12-hour chart indicates a bearish pattern with the potential for a significant price decline. The price was previously moving in a well-defined upward channel, which it has now broken below, suggesting a bearish reversal.
A breakdown from the rising channel indicates that the bullish momentum is weakening, and sellers are gaining control. Further, the bearish engulfing candles signal that the sellers are in control.
A sharp downward projection shows a possible 43.44% drop, targeting the $1.00 level. This is significant psychological support, which could act as a floor if the bearish move intensifies.
The next immediate support is located at $1.00, a key level to watch for any potential rebound or bounce. A failure to hold $1.00 could lead to further downside.
The resistance after the breakdown would be the $2.00 level, which corresponds to the middle of the broken channel. If the price retraces upward, this level could act as strong resistance. If bulls manage to push the SUI price back into the channel and above the $2.00 resistance, it would signal market strength. Sui would surge higher, break the $2.2 all-time high, and enter price discovery.
Frequently Asked Questions (FAQs)
Sui price rose 182% from the beginning of September, delivering one of the best performances in the crypto market during that time. The rally was driven by increased buyer interest and positive market sentiment, pushing the price to a new all-time high.
The higher-than-expected U.S. CPI data negatively impacted the broader crypto market, with Bitcoin falling below $60,000. This market pullback contributed to Sui price decline.
If the price holds at the $1.00 support level, there may be a chance for a rebound. A successful push above the $2.00 resistance could allow Sui to re-enter its previous upward channel, potentially leading to new all-time highs.
Related Articles
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/is-the-sui-price-rally-over-signs-point-to-a-43-drop-inbound/
✓ Share: