SUI price recently hit a new all-time high (ATH) of $2.18, but the bullish momentum that propelled the altcoin to that level is now waning. With enthusiasm waning among SUI holders, the altcoin could be at risk of a significant price drop.

As market sentiment shifts, the token price is showing signs of weakness that could lead to a potential 23% drop.

SUI holders are pushing back

The token’s total transaction volume has seen a sharp decline, falling 30% in the past 48 hours. With a drop from $1.1 billion to $830 million, the declining transaction volume indicates a decreasing participation of SUI holders. This considerable decline suggests that interest in the altcoin is waning, adding to the negative sentiment surrounding the asset.

Furthermore, the drop in trading volume points to reduced market engagement, which often precedes price corrections. With fewer market participants, liquidity becomes a concern, making it harder for the token 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 such as 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 withdrawing money from the asset.

This capital flow suggests that investors are moving their funds to avoid potential losses from a price decline. The weakening macro momentum aligns with the decreasing trading volume, further solidifying the possibility of a bearish trend for SUI. Without a change in overall market sentiment, SUI is likely to continue its downward trajectory.

CMF SUI. Fonte: TradingView

SUI Price Prediction: No New Highs

SUI price is losing the bullish momentum that took it to its ATH of $2.18. With waning 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 the coin 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% drop 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 signals would need to turn positive, which could invalidate the bearish outlook and potentially support a recovery in SUI price.

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