Over the past three days, Sui (SUI) exchange outflows have increased significantly, suggesting that the altcoin’s recent decline may not last. As of writing, SUI is trading at $3.25.
This price is 16% lower than its all-time high, recorded on November 17. Can SUI recover and surpass the $4 mark?
Sui shows bullish signals on multiple fronts
According to data from Coinglass, the inflow/outflow of Sui in the spot market since November 30 has reached approximately $25 million. This metric measures the value of tokens sent to or withdrawn from the exchange.
When this value is positive, it indicates that more cryptocurrency is flowing into the exchange, which could create selling pressure. Conversely, when the value is negative, it means that more money is being withdrawn, suggesting that investors are unwilling to sell.
For SUI, the value is negative. Therefore, if this trend continues, the price of SUI could erase the recent 5% decline and potentially return to its historical peak.
Inflow/outflow of Sui in the spot market | Source: Coinglass
In addition, data from Santiment shows that the funding rate of SUI is positive. The funding rate indicates whether long-position traders are paying fees to short-position traders to maintain their positions.
When this rate is positive, it means that long positions are paying fees, indicating that the overall sentiment among traders is optimistic. Conversely, a negative rate indicates that short positions dominate and expectations are for a price decline.
A significant increase in this metric implies that traders expect the price to recover. If the outflow of Sui from the exchange continues to rise, the price could bounce back, providing profits for those holding long positions.
Funding rate of Sui | Source: Santiment
SUI Price Prediction: Is a recovery imminent?
On the 4-hour chart, buying pressure is defending the price level of $3.21. This is a strong support zone, likely preventing this coin from dropping below $3.
A closer look at the chart also shows increasing buying pressure. If maintained, Sui could affirm the bullish thesis. However, traders need to pay attention to the level of $3.15, corresponding to the 78.6% Fibonacci retracement level.
As long as the price of SUI remains above this level, it may rise to $3.94. However, if this token falls below that level, recovery will become difficult.
SUI/USDT 4-hour chart | Source: TradingView
In that case, if the outflow of SUI from the exchange decreases, the above forecast may be invalidated. At that point, the price of this cryptocurrency could drop to $2.97.
