Outflows from the SUI exchange have increased over the past three days, suggesting that the altcoin’s recent decline may not last. As of this writing, SUI is priced at $3.23.
This price is 17% below its all-time high, which was reached on November 17. Will SUI recover and rise above $4?
Soi shows bullish signals on several fronts.
According to Coinglass: SWI spot inflows/outflows since November 30 combined at around $25 million. These flows measure the value of tokens sent to or removed from exchanges.
When the value is positive, more cryptocurrencies are flowing into exchanges. From a price perspective, this indicates potential selling pressure. On the other hand, if the value is negative, it means there are more outflows, indicating that holders are not willing to sell.
For SUI, it is the latter. So, if this trend continues, SUI price may erase its recent 5% decline and may even rise to its all-time high.
Following the development, data from Santiment shows that the SUI funding rate is positive. The funding rate shows whether traders in long positions are paying shorts to keep their positions open or vice versa.
When the ratio is positive, it means that longs are pushing, and the general sentiment of traders tends to be bullish. On the other hand, if the ratio is negative, it means that shorts are pushing longs, and the general outlook tends to be pessimistic.
Therefore, a significant rise in the scale indicates that traders are anticipating a recovery. If outflows from the SWI exchange continue to rise, the price may rebound, and these traders can become profitable by holding these positions.
SUI Price Prediction: Will There Be a Recovery?
SUI bulls on the 4-hour chart are showing that they are defending the price at $3.21. This support seems to be strong and could prevent the cryptocurrency from a major drop below $3.
A further look at the chart also shows that the trading is leaning towards increasing buying pressure. If this continues, the SWI could confirm the bullish thesis. However, traders may need to keep an eye on the $3.15 level, which is the 78.6% Fibonacci retracement level.
As long as the SUI price remains above this level, the altcoin price could rise to $3.94. However, if the token falls below that point, the rebound could be difficult.
If this happens and SUI outflows from the exchange decrease, the predictions may be invalidated. If this is the case, the price of the cryptocurrency may drop to $2.97.