The SUI token, native to the Sui Network, has recently experienced a 13% decline over the past week, disrupting its prior bullish momentum. This downturn has sparked concerns among market analysts, who predict a potential further decline for the cryptocurrency.
Understanding SUI’s Loss of Key Support Zone
This week, SUI has joined the broader market downtrend, relinquishing its recently acquired gains. A significant 5.3% drop in just 24 hours has intensified worries among investors and analysts. Despite being one of the standout performers in Q3, marked by a 15% weekly surge at the start of the month, SUI’s bullish trajectory has been interrupted by allegations of insider trading.
These allegations surfaced on October 13, with market expert LightCrypto suggesting that the continuous sale of SUI by insiders, amounting to $400 million, has negatively impacted its performance. The result was a drastic 15% daily correction, although the token managed to stay above the critical $2 support level. Since then, SUI has been relatively stable, fluctuating between $2 and $2.15 until a recent dip.
On Tuesday morning, SUI fell below the $2 support level, plunging 6.5% to reach $1.87 before recovering slightly to $1.90. This represents a 13% decrease from its price a week ago and an 18.4% drop from its all-time high.
Is a Substantial 30% Pullback on the Horizon?
The recent price movements of SUI have led some crypto analysts to predict a potential further pullback. Altcoin Sherpa, a well-known crypto analyst, has commented on the current market performance, noting a pause in the rally that followed Bitcoin’s surge to $69,000.
Sherpa highlighted that “most alts are either pulling back or consolidating,” and he believes that tokens like SUI and Bittensor (TAO), which saw strong performances in September, might experience additional pullbacks before resuming their upward trajectory. Specifically, Sherpa forecasts a correction of 25% to 30%, potentially reaching the $1.4 support zone or lower, while noting the possibility of several rebounds during this period.
Similarly, crypto investor Doji has pointed out that SUI has broken below the lower trendline of a broadening wedge pattern on its monthly chart. Doji anticipates that SUI will retest this pattern before potentially dropping further toward the lower liquidity area around $1.4. Despite these concerns, Doji remains optimistic about seeing the middle of the macro range eventually.
Despite the recent downturn, SUI has still managed to achieve a notable 30.7% increase over the monthly timeframe, currently trading at $1.92.
Conclusion
The SUI token’s recent market performance highlights both the volatility and potential inherent in cryptocurrency investments. While recent allegations and market corrections have posed challenges, the long-term outlook remains a topic of interest for investors and analysts alike. Keeping a close eye on market trends and expert predictions will be crucial for those invested in SUI and the broader cryptocurrency landscape.
