SUI price has recently reached a new all-time high (ATH) of $2.18, but the bullish momentum that pushed the altcoin to this level is now fading.
SUI price is facing a potential 23% drop from its recent highs as key technical indicators and market signals suggest a bearish outlook for the altcoin.
The price of SUI has seen a rapid ascent in recent weeks, reaching a new all-time high (ATH) of $2.18. However, this bullish momentum might be coming to an end as several indicators are now pointing towards a potential downtrend for the altcoin.
With the SUI price now showing signs of weakness, our analysis suggests that the altcoin could be set for a potential 23% drop from its recent highs. Here's a closer look at the technical indicators and market signals that support this prediction.
After reaching its ATH on February 16, SUI price has seen a decreasing interest from holders. This is evident in the overall transaction volume for the altcoin, which has dropped sharply by 30% over the last 48 hours alone. Commencing the analysis period with a volume of about 1.1 billion, SUI price has seen a decreasing participation from its holders as the two days conclude with a lower volume of around 830 million.
The drop in transaction volume for SUI points to a decreasing engagement in the market, which could be a precursor for a price correction. With fewer participants in the market, liquidity also becomes a concern, making it harder for SUI to maintain its recent gains. This shift in market engagement, coupled with the lack of confidence, could drive the price of SUI lower in the upcoming days.
Zooming out to a macro perspective, technical indicators like the Chaikin Money Flow (CMF) are also highlighting bearish momentum for SUI. The Chaikin Money Flow has been consistently showing outflows since the beginning of the month, which have been intensifying recently. Currently, the CMF indicator is positioned below the zero line, indicating that investors are pulling money out of the asset.
This outflow of capital suggests that investors are moving their funds to avoid potential losses from a price decline. The weakening macro momentum aligns with the decreasing transaction volume, further solidifying the possibility of a downtrend for SUI. Without a shift in broader market sentiment, SUI is likely to continue its downward trajectory.
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