🤯 Is The Sui Price Rally Over? Signs Point To A 43% Drop Inbound
Explore what's next for Sui price rally as technical analysis & market sentiment shifts indicate a potential correction.
Sui price delivered one of the best performances in the past month. However, over the past week, the asset has displayed signs of buyer exhaustion as it hit a critical resistance level and a new all-time high. After rising 182% from the beginning of September, SUI has retraced 16%. But is this just a retrace or a full-blown correction?
The United States CPI released yesterday came in slightly higher than expected, causing the crypto prices to drop as BTC slid below $60,000. This further affected SUI negatively, adding to the already precarious position the token is in.
🔸 Exchange Netflows Signal Sui Price Correction
Data from Coinglass shows high SUI exchange inflows for the past two consecutive weeks, suggesting that holders have possibly been sending the coins to exchanges to sell. Coinbase and Binance received most of the coins, totaling $15 million and $12.55 million, respectively. Coincidentally, the Sui price began to show weakness on October 7, followed by a price decline over the following days.
This heavy inflow of coins has spooked traders as it is a bearish signal. The market sentiment on SUI is slowly turning bearish, as the Coinglass Crypto Derivative Visual Screener shows. Both the changes in the price of SUI and its open interest turned out to be negative, suggesting that traders are closing their long positions in losses after failing to lock in profits at the top. When this happens, traders tend to open shorts, which further signals that the SUI price may drop lower.
This observation is further exacerbated by the Coinglass Liquidation Map, which shows the Cumulative Short Liquidation Leverage was larger than the corresponding Longs. This imbalance shows bearish sentiment is dominating SUI market because traders anticipate further downside potential for the asset.
