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Cryptocurrency News Articles
SUI Price Prediction: Token Loses Bullish Support, Poised to Shed Recent Gains
Oct 24, 2024 at 05:30 pm
SUI, the native token of the Layer-1 Move-programmed blockchain, reached an all-time high of $2.36 on October 12. However, significant selling pressure
The native token of the Layer-1 Move-programmed blockchain, SUI, hit an all-time high of $2.36 on October 12. But brisk selling pressure has kept it from moving any higher since then.
As buying momentum continues to wane and bearish bias against the altcoin strengthens, SUI is poised to shed some of its recent gains in the near term. Here's a technical analysis explaining why this might happen.
A glance at the SUI/USD 1-day chart reveals that the token has broken below the lower line of the rising parallel channel it traded within for over one month.
When an asset’s price moves between two parallel trendlines, sloping upward, it creates a rising parallel channel. As the price continues to oscillate within the bounds of the upper and lower trendlines, it signifies a bullish trend.
If an asset's price breaks below the lower trendline of a rising parallel channel, it usually signals a potential bearish reversal or weakening of the upward trend. This price action suggests that the previous support level has been breached.
In this case, it indicates that buyers could no longer sustain the upward momentum, leading to a potential shift in trend.
Moreover, readings from SUI’s Aroon Up Line further corroborate this bearish outlook. At press time, this line is charting a downward trajectory at 21.43%.
The Aroon indicator is used to identify the strength and direction of a trend. A reading of 21.43% on an asset’s Aroon Up Line signals that the market is transitioning from a strong uptrend. It reflects weakening bullish strength and hints at a potential for a sustained downtrend.
SUI Price Prediction: Sentiment Has to Shift for Any Rebound to Happen
SUI is currently trading at $2.02, having fallen below the lower trendline of its rising parallel channel, which provided support at $2.30. The next key support lies at $1.91, and if this level fails to hold, SUI could drop further to $1.64 — representing a 19% decline from its current price. If bulls cannot defend this level, the price may plunge to $0.87, where the next major support lies.
However, a resurgence in demand for the altcoin could invalidate this bearish outlook. In such a scenario, SUI’s price would aim to reclaim its previous high of $2.36 and potentially rally beyond it.
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