The native token of the Layer-1 blockchain Sui, known as SUI, recently achieved a record high of $2.36 on October 12th. However, a surge in selling pressure has interrupted its upward trajectory, leading to concerns among investors about a potential 19% price drop.
SUI’s Bullish Momentum Falters
Despite its previous high, SUI has been struggling to maintain its bullish momentum. The token has now fallen below a key support line, indicating a bearish reversal. This drop below the lower boundary of the rising parallel channel, in which SUI had been trading for over a month, suggests that sellers have taken control.
A parallel channel is formed when an asset’s price moves between two upward-sloping trendlines, indicating a bullish trend. When the price falls below the lower trendline, it often signifies a weakening of the asset’s upward momentum and the start of a bearish reversal. This is precisely what has occurred with SUI, as buyers could no longer sustain the bullish trend, allowing sellers to push prices lower.
Aroon Indicator Suggests Further Weakness
In addition to the break below the parallel channel, the Aroon indicator confirms the bearish outlook for SUI. The Aroon Up Line, a significant component of this indicator, has dropped to 21.43%, indicating a weakened bullish trend. Typically, such a low reading suggests that the uptrend is losing steam and a downtrend may be on the horizon.
This declining Aroon reading reinforces the notion that SUI’s bullish phase is drawing to a close. With sellers continuing to dominate, the likelihood of further price declines increases.
Price Prediction: What’s Next for SUI?
Currently, SUI is trading around $2.02, down from its previous support level of $2.30. The next critical support level is at $1.91, and if it fails to hold, SUI could experience a more significant decline, potentially dropping to $1.64. This would represent a 19% decrease from its current price, indicating a significant bearish move.
If SUI’s price falls below $1.64, the next major support level is at $0.87, resulting in an even more drastic price drop. Such a decline would likely shake investor confidence, leading to more traders selling their holdings and further accelerating the downward trend.
Bulls Must Take Action to Prevent Further Decline
Despite the prevailing bearish sentiment, there is still hope for SUI. A surge in demand for the token could invalidate the bearish outlook. If buyers step in and push SUI’s price back above the critical support level of $2.30, the token could regain its upward momentum.
In this scenario, SUI’s price could aim to reclaim its previous high of $2.36 and potentially surpass it. However, a significant influx of buyers would be necessary for bulls to regain control and shift market sentiment in favor of a rally.
Will SUI Make a Comeback?
The current situation suggests a bearish reversal for SUI, with key support levels failing and the Aroon indicator indicating a weakened bullish trend. If the price continues to decline and breaks through the $1.91 and $1.64 levels, SUI could experience a significant drop. However, a surge in demand could prevent this outcome and potentially pave the way for a recovery.
