Sui, the native layer 1 (L1) blockchain token of the Sui Network, has experienced a parabolic rise over the past month, reaching $1.73 – a 120% increase in 30 days.
However, market indicators are signaling that this rally may be short-lived as SUI holders begin selling for profit. This analysis examines potential target prices if SUI demand continues to decline.
Sui sees negative shift in market sentiment
A notable indicator of the negative shift in sentiment towards SUI is the funding rate, which is at a multi-month low of -0.067%.
The funding rate is a periodic payment between traders who are long (expecting the price to rise) and those holding short positions (expecting the price to fall). When the funding rate for an asset is negative, traders are increasingly likely to take short positions as they expect the price to fall.
Read more: Guide to the 10 best Sui (SUI) wallets in 2024.
The sudden drop in the SUI funding rate to a multi-month low reflects a shift in sentiment from bullish to bearish. Its traders believe the price is likely to decline and have begun preparing to profit from it.
Moreover, the sharp drop in Chaikin Cash Flow (CMF) SUI confirms the decline in buying pressure. As of this writing, it is 0.02 and trending towards the zero line.
CMF measures the flow of money into and out of an asset over a specified period. When it falls, it indicates that the asset is attracting less buying interest. This suggests that buyers are weakening and sellers are gaining control.
SUI Price Forecast: 50% Cut on the Horizon
The SUI Moving Average Convergence Divergence (MACD) indicator highlights increased selling pressure in the market. The coin’s MACD line (blue) may fall below the signal line (orange) at the time of publication, hinting at a bearish reversal.
Traders view this crossover as a sign that prices may begin to decline. This indicates that sellers are gaining strength and this may be a good time for traders to consider covering long positions or going short.
If the downtrend continues, SUI price could fall by 50%, retesting the support at $0.86. Failure to hold this level could result in the price falling further to $0.46.
Read more: What are the best altcoins to invest in in October 2024?
Conversely, if demand resumes and profit taking eases, the SUI could rise to $2.17, a level last seen in March.
