The Sui (SUI) cryptocurrency, which had recently enjoyed a strong upward trend, is now facing significant headwinds. Following its all-time high of $2.36 on October 13, SUI’s price has experienced a downward slide, driven by a combination of technical indicators and weakening on-chain metrics. These factors suggest a short-term bearish outlook that investors should be cautious about.
SUI Price Shows Signs of Weakness
SUI’s price surge to $2.36 marked a major milestone, but the coin has since struggled to maintain its upward momentum. In the eight days following this peak, the cryptocurrency dropped by over 14%, trading near $2.00 at the time of writing. The technical analysis suggests that SUI may face further declines as bearish divergence and other factors come into play.
A key indicator, the Relative Strength Index (RSI), which measures the strength of price movements, is signaling caution. While SUI’s price achieved a higher high on October 13, the RSI failed to match this trend, instead forming a lower high. This pattern is known as bearish divergence, often seen as a precursor to a potential reversal or crash in price.
In addition to the RSI, the Awesome Oscillator (AO), another momentum-based indicator, is showing a weakening bullish momentum, adding to the concern that SUI’s price may continue its decline.
Read more:The Road to $2.40: Can Sui Leave Its Rivals in the Dust?
Bearish Momentum and On-Chain Data
On-chain data further supports the bearish case for Sui. The long-to-short ratio, a key indicator of market sentiment, has dropped to 0.866, according to Coinglass. This is the lowest level in a month, signaling that more traders are positioning themselves for a price drop rather than a rise. A ratio below one indicates that bearish sentiment is stronger, with traders increasingly betting on SUI’s decline.
The bearish outlook is compounded by a sharp decline in daily trading volume. Sui’s trading volume fell from a peak of $4.02 billion on October 16 to just $1.05 billion by October 22. This continuous drop in volume reflects waning interest and liquidity in the Sui ecosystem, which could further pressure the asset’s price in the short term.
Read more:Could Sui (SUI) Skyrocket by 10x? Why $4 in 2024 May Be Closer Than You Think!
What’s Next for SUI? Key Levels to Watch
If SUI continues on its current trajectory, it could see an 18% decline from its current price of $2.00 to retest a key support level at $1.64. This level aligns with the 61.8% Fibonacci retracement, calculated from the August low of $0.46 to the October high of $2.36. Fibonacci retracement levels are often used by traders to identify potential support or resistance zones, and in this case, the $1.64 level is crucial for determining whether SUI can find a base before another potential rally.
However, there is a chance that the bearish outlook could be invalidated. If SUI’s price manages to close above $2.17 in the near term, it could signal a reversal in the current downtrend. In this case, SUI could rally again and retest its all-time high of $2.36.
Read more:SUI Token on Fire! Will Sui Network’s AI Move Break All-Time Highs!
Conclusion: A Bearish Short-Term Outlook for SUI
Overall, SUI’s price forecast remains bearish in the short term, with both technical indicators and on-chain metrics pointing to further declines. The bearish divergence in momentum indicators, combined with a drop in daily trading volume and a low long-to-short ratio, suggests that SUI is likely to face downward pressure unless it can break above the critical $2.17 resistance level.
Investors should keep a close eye on SUI’s price movements and market sentiment in the coming days, as the next few trading sessions will be crucial in determining whether Sui can recover or continue its current slide.
