Sui, the native token of Sui Network, saw a remarkable price surge of 120% in the past month, reaching $1.73. However, market signals indicate this momentum might not last, as holders begin selling to gain profits, potentially leading to significant price drops.
The funding rate for SUI sits at -0.067%, highlighting a negative market sentiment. A negative funding rate points to traders opening more short positions, expecting the token's price to decline as market confidence wanes.
Further confirming this trend, SUI's Chaikin Money Flow (CMF) shows declining buying pressure. A CMF at 0.02 moving towards zero suggests diminishing buyer interest and a stronger presence of sellers in the market.
The MACD indicator reflects growing selling pressure, with its MACD line poised to fall below the signal line, a bearish signal suggesting potential declines. Traders consider this crossover a cue to possibly close long positions or start short ones, aiming for profit as prices fall.
If the downtrend continues, SUI's price might drop by 50%, testing support at $0.86, with further decline to $0.46 possible. Conversely, if demand revives, there's potential for SUI to reach $2.17, a high from March.
