In the ever-fluctuating world of cryptocurrency, Sui (SUI) has recently made headlines with an impressive rise of 182% since the beginning of September. However, the token’s momentum seems to be waning as it faces signs of buyer exhaustion, hitting a critical resistance level and setting a new all-time high. After reaching its peak, SUI has retraced by 16% in just a week, leading many to question whether this is merely a pullback or the onset of a more significant correction.
CPI Release Causes Market Jitters
The recent U.S. Consumer Price Index (CPI) report, which came in slightly higher than expected, has added fuel to the fire, causing a ripple effect across the cryptocurrency market. Bitcoin (BTC) dropped below $60,000, dragging down prices across the board, including SUI. This backdrop of economic uncertainty has left traders wary, and Sui’s price performance appears increasingly precarious.
Exchange Netflows Signal Potential Correction
Analyzing recent exchange netflows, data from Coinglass indicates a concerning trend: substantial inflows of SUI to major exchanges. Over the past two weeks, Coinbase and Binance have received approximately $15 million and $12.55 million, respectively. This surge in exchange inflows suggests that many holders are opting to sell their positions, which could signify a bearish outlook for SUI.
On October 7, SUI began to show signs of weakness, with a downward trajectory following the influx of coins. The market sentiment is shifting towards bearishness, as traders are increasingly closing long positions at a loss after failing to secure profits at the peak. This shift typically leads to a rise in short positions, further contributing to the bearish sentiment surrounding SUI.
Looking at Sui’s 12-hour chart, the technical indicators reveal a troubling pattern. The price has broken below a previously established upward channel, signaling a potential bearish reversal. Bearish engulfing candles have emerged, further confirming that sellers are gaining the upper hand.
If the current market conditions persist, analysts predict a potential drop of 43.44%, with targets set at the $1.00 psychological support level. This crucial price point may serve as a floor during any intensified bearish movements.
However, should SUI manage to hold above $1.00, there may be opportunities for a rebound. The next significant resistance level to watch for would be $2.00, which lies at the midpoint of the broken channel. If bulls can push SUI back into the channel and beyond the $2.20 resistance, it could signify renewed market strength and propel the token into price discovery mode.
Also Read: SUI Price Dips 3%, Struggles To Reclaim $2 After 140% Yearly Surge – Will It Break ATH?
What Lies Ahead for SUI?
With Sui currently trading at $1.80—a 4% drop in the last 24 hours—the outlook remains uncertain. As traders respond to market signals and economic indicators, the question remains: will SUI experience a full-blown correction, or can it bounce back from these critical support levels? For now, all eyes will be on market dynamics and trader sentiment as they shape the future of Sui in this volatile landscape.
As we continue to monitor SUI’s price movements, the upcoming days will be crucial in determining whether this cryptocurrency can recover or whether a deeper correction is inevitable.
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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