SUI price has recently struggled to secure $2.00 as support, and is moving further away from this figure as traders’ enthusiasm wanes.
The recent downtrend of the altcoin reflects caution in market sentiment, as SUI faces challenges in stabilizing and heading towards a new all-time high (ATH).
Price needs payment
Market sentiment towards SUI remains mixed, as evidenced by the volatile funding rates that swing between positive and negative. This ambivalence points to uncertainty among traders, who seem divided on SUI’s short-term trajectory.
This fluctuation in sentiment often leads to increased volatility and can negatively impact the price of the altcoin. Many SUI traders are currently shorting, aiming to profit from the expected declines, which has added downward pressure.
These short selling trends suggest that traders are wary of SUI’s immediate outlook, with many expecting further declines. As long as this sentiment persists, SUI may struggle to gain upward momentum. These expectations can create a self-fulfilling cycle, where lower prices reinforce bearish sentiment, prompting more traders to take short positions.
The overall momentum of SUI is also pointing to a cooling trend, especially with the Relative Strength Index (RSI) declining since mid-October. Previously in the overbought zone, the RSI has been steadily declining and is now hovering above the neutral level of 50.0. This decline indicates a decline in bullish momentum, and if the RSI drops below 50.0, it could signal stronger bearish conditions.
When the RSI remains above 50, it often indicates a chance for price stability. However, as the indicator continues its downward trajectory, the likelihood of an imminent reversal diminishes.
SUI Price Prediction: Recover Losses
Currently, SUI is trading at $1.92, below the $2.03 resistance level. For SUI to make any progress towards the previous high of $2.36, it must first convert $2.03 into a strong support level. Doing so would signal renewed bullish interest and could attract additional buying momentum.
If SUI fails to break the $2.03 barrier, the altcoin is likely to continue consolidating above the $1.69 support level. Prolonged consolidation could contribute to increased market uncertainty as traders remain hesitant to fully commit to SUI. This lack of a clear direction keeps the price in a holding pattern, delaying any major moves towards a new high.
The bearish-neutral outlook for SUI will be invalidated if it can turn $2.03 into support while the broader market conditions turn bullish. Such a shift will boost confidence in SUI’s trajectory, potentially reigniting its rally ambitions and paving the way for a new all-time high.
