Amidst the current market downturn, the outlook for SUI, the native token of the Sui blockchain, appears bearish as it shows signs of a potential double-digit price drop. The daily time frame of SUI has formed a bearish price action pattern, indicating a shift towards a bearish sentiment. The failure to hold crucial support from the ascending trendline further confirms this bearish outlook.
Technical analysis experts suggest that with the recent price decline, SUI has confirmed a bearish breakdown, leading to a shift in overall sentiment towards the bearish side. Based on recent price action and historical momentum, if SUI remains below the $4 level, there is a strong possibility of a 35% drop to reach the $2.30 level in the future. However, SUI’s Relative Strength Index (RSI) at 35.5 indicates that there is room for further price declines.
Currently trading near $3.66, SUI has experienced an 8.50% price decline in the past 24 hours, accompanied by a 55% drop in trading volume, suggesting reduced trader participation.
In a surprising turn of events, despite the bearish market sentiment, long-term holders have been accumulating SUI, as indicated by on-chain analytics firm Coinglass. Data from spot inflow/outflow shows exchanges witnessing a significant outflow of over $18.5 worth of SUI tokens. This outflow suggests potential accumulation by long-term holders, which could lead to buying pressure and potential price surges, although challenging to achieve amidst the current bearish sentiment.
As of now, major liquidation levels for SUI are near $3.56 on the lower side and $3.85 on the upper side, with traders reported to be over-leveraged at these levels, according to Coinglass.
In conclusion, the bearish trend for SUI seems to be gaining momentum, with technical indicators and on-chain data pointing towards further price declines. However, the accumulation by long-term holders presents a potential buying opportunity, albeit amidst challenging market conditions. Investors are advised to monitor the situation closely and consider their risk tolerance before making any investment decisions in SUI.