As of now, Sui (SUI) trades at $2.04, experiencing a sharp 14% decline in just two days. The technical landscape indicates that coin may continue its downward trajectory, leaving traders wondering: how low will coin go?
Selling Pressure Mounts
Currently positioned just above the critical resistance level of $1.97, SUI is under significant selling pressure. If this level fails to hold, SUI may find support within its Ichimoku Cloud, a powerful indicator that tracks market trends and momentum while serving as a key support and resistance benchmark.
In SUI’s case, the Ichimoku Cloud can act as a safety net if the price approaches from above. However, a dip below the cloud could signify a shift from bullish sentiment to a more bearish outlook. The cloud often serves as a transitional zone, and a fall into or beneath it signals weakening momentum—an alarming indication of a potential bearish phase.
Bearish Indicators Signal Caution
Compounding the bearish sentiment is the Moving Average Convergence Divergence (MACD), which reflects shifting market sentiment. Recently, SUI’s MACD line (blue) crossed below its signal line (orange), suggesting a bearish pivot. This crossover indicates that SUI’s short-term moving average is falling faster than the longer-term average, heightening selling pressure and prompting traders to reevaluate their positions.
The market’s reaction to these indicators has been telling; many traders are opting to exit long positions, anticipating further declines. This trend is underscored by SUI’s declining open interest, which has plummeted 24% in just two days, from a peak of $709 million on October 14 to $538 million. This sharp drop signals dwindling market participation, as more traders seem to be closing their positions in anticipation of further price declines.
If current selling pressures persist, analysts project that SUI’s price could potentially plummet by 55%, landing around $0.91. This bearish outlook is alarming, particularly for investors who have held onto their positions amid fluctuating market dynamics.
Also Read: Sui Foundation Denies $400M Insider Token Dump As SUI Drops 10% In 24 Hours
However, the outlook isn’t entirely grim. If new demand enters the market and buying pressure surges, SUI could reclaim its all-time high of $2.36—or even surge beyond that level.
Tread Carefully
As traders navigate the uncertain waters surrounding SUI, it’s crucial to remain vigilant and consider both technical indicators and market sentiment. While the bearish signs are strong, the potential for a bullish reversal remains if demand resurfaces. The question of how low SUI will go is still up in the air, but one thing is clear: traders must tread carefully in this volatile market environment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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