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. With waning enthusiasm among SUI holders, the altcoin could be at risk of a significant price drop.
As market sentiment shifts, SUI’s price shows signs of weakness that may lead to a potential 23% decline.
SUI Holders Are Backing Off
The overall transaction volume for SUI has seen a sharp decline, falling by 30% within the last 48 hours. Dropping from $1.1 billion to $830 million, the declining transaction volume indicates decreasing participation from SUI holders. This notable decline suggests that interest in the altcoin is waning, further adding to the negative sentiment surrounding the asset.
The drop in transaction volume points to reduced market engagement, which often precedes price corrections. With fewer participants in the market, liquidity becomes a concern, making it more difficult for SUI to sustain its recent gains. Investors are increasingly cautious, and this lack of confidence could push the price lower in the coming days.
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SUI Transaction Volume Source: Santiment
On a macro level, technical indicators like the Chaikin Money Flow (CMF) are signaling bearish momentum for SUI. The CMF has been showing consistent outflows since the beginning of the month, with outflows intensifying in recent days. Currently, the CMF indicator is below the zero line, which confirms 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.
SUI CMF. Source: TradingView
SUI Price Prediction: No New Highs
SUI’s price is losing the bullish momentum that propelled it to its ATH of $2.18. With declining interest from holders and negative market signals, the altcoin is likely to lose its support at $1.70. A break below this level would confirm the weakening outlook for SUI.
The next critical support for SUI lies at $1.45, a level that has been tested multiple times in the past. If SUI falls to this level, it would mark a 23% decline from its recent highs, reflecting the broader bearish sentiment in the market.
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SUI Price Analysis. Source: TradingView
However, a bounce off the $1.70 support could prevent further losses for SUI. For this to happen, broader market cues would need to turn positive, which could invalidate the bearish outlook and potentially support a recovery in SUI’s price.
