Sui (SUI) Price Faces Downward Pressure: $3.40 Target?
After a strong rally, Sui (SUI) is now facing headwinds as traders exhibit bearish sentiment. A potential price drop to $3.40 is being eyed, but underlying metrics suggest a possible rebound.
Key Takeaways
- SUI's 34% surge is now countered by short-term selling pressure.
- Bearish sentiment prevails among traders.
- $50 million in exchange outflows indicate long-term accumulation.
- Potential rebound above $4.20 remains a possibility.
Sui (SUI) is experiencing short-term selling pressure following a notable 34% price increase. The cryptocurrency appears poised for a potential price drop after failing to maintain its recent gains.
SUI broke out of a descending trendline and reached the $4.20 level. However, the price action now signals a potential correction.
Current Price Momentum
As of press time, SUI was hovering near the $3.77 level after a 7.50% price dip in the last 24 hours. Trading volume has decreased by 26%, indicating reduced interest.
This decline likely results from profit-taking after the recent rally, with capital potentially shifting to other assets like Ripple (XRP) and Avalanche (AVAX).
Sui Price Action and Key Levels
Technical analysis suggests a bearish outlook for SUI in the short term, especially after the breakdown of price consolidation near $4.20.
If the current momentum continues, SUI could drop 10% to reach support at $3.40. Conversely, a daily candle close above $4.20 could trigger a 30% rally towards $5.50. This bullish scenario is contingent on decisively breaching the $4.20 mark.
The Relative Strength Index (RSI) has cooled to 61, signaling waning bullish momentum and a possible short-term consolidation or correction.
On-Chain Metrics Reflect Mixed Sentiment
Traders are increasingly betting on the short side, with SUI's long/short ratio at 0.87, indicating strong bearish sentiment. Key liquidation levels are at $3.67 (lower side) and $3.88 (upper side). Approximately $14.44 million in long positions and $20.90 million in short positions have been recorded at these levels.
Despite the bearish sentiment, long-term holders are accumulating SUI. Data reveals nearly $50 million worth of SUI has been withdrawn from exchanges, suggesting strong long-term confidence.
Disclaimer: Cryptocurrency investments are subject to market risks. Please do your due diligence.
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