Both Total Value Locked (TVL) and technical indicators are sending mixed signals about the price of SUI. After reaching the TVL benchmark above $1 billion, market support for SUI showed signs of fluctuation, leading to a period of stagnation.
Additionally, its ADX suggests that although the SUI is in a downtrend, it lacks strong momentum that could allow it to reverse. Investors are keeping a close eye on key support and resistance levels as they are likely to determine the next direction of SUI price movement.
SUI TVL: Can it get back to $1 billion?
The Total Value Locked (TVL) of SUI currently stands at US$979 million, up impressively from US$313 million on August 4th. On September 30, SUI’s TVL crossed the US$1 billion mark for the first time, coinciding with a notable increase in prices.
During this period, the price of SUI increased from $0.57 to $1.83, indicating strong market enthusiasm and confidence in the coin’s potential.
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However, since late October, TVL SUI has shown signs of stagnation, repeatedly falling just below $1 billion and then recovering. This hesitant movement reflects cautious market sentiment, suggesting that investors may be hesitant to commit long-term capital to SUI tokens.
This stagnation signals potential volatility or downward pressure on the SUI price as a persistent lack of confidence in TVL could limit further price increases. Without a constant influx of investment, SUI may struggle to maintain its previous momentum.
SUI ADX shows that the current downtrend is not strong
ADX (Average Directional Index) SUI is currently at 16.66, reflecting sequential declines over the past few weeks. A falling ADX indicates weakening momentum in the SUI price trend, suggesting that the current downtrend lacks significant strength.
ADX helps measure the strength of a trend, not its direction, so a reading this low means the market is not fully committed to a sustained bearish move.
ADX values are critical to assessing the strength of a trend: values below 20 indicate a weak or non-trending market, while values above 25 signal a strong trend, either up or down. The low ADX level confirms that the current SUI downtrend is not particularly strong.
With ADX at 16.66, price action may remain sluggish or lack direction until momentum builds. This means the SUI could continue to drift without significant volatility unless a stronger trend begins to develop.
SUI Price Forecast: More Corrections Ahead?
The SUI EMA lines are currently bearish, with the short-term averages crossing below the long-term averages, a classic signal of downward momentum. However, the short-term lines have not yet crossed the oldest long-term EMA, which would create a death cross.
This formation is often seen as a strong bearish indicator, signaling that further declines could be expected if it materializes. The death cross suggests a strengthening downtrend, which could put additional pressure on the SUI price.
Read more: Guide to the 10 best Sui (SUI) wallets in 2024.
If the downtrend continues, SUI price may test support near $1.74 first. If this level does not hold, it could fall to $1.60, which would represent a potential correction of 13.9%.
On the other hand, ADX indicates that the current downtrend lacks strong momentum, leaving room for a potential reversal. If the uptrend takes shape, SUI could test resistance at $2.16. A break of this level will open the door to further gains, with the price possibly reaching $2.36, a potential increase of 26.8%.
