SUI price rally halted over the last few days as the market cooled down, resulting in a failed breach of $1.00.
This halt, however, was propelled by investors’ declining optimism as they opted to withdraw their money from the asset.
SUI price could continue its decline as potential buying pressure decreases. The MACD indicator reveals that bullish momentum is starting to fade just two weeks after it began. This shift in momentum could negatively impact the crypto asset, raising concerns among traders and investors.
The diminishing momentum indicated by the MACD suggests that the initial surge in buying interest may be losing steam due to the recent correction. This weakening trend is critical as it could signal a reversal or a period of consolidation, putting downward pressure on SUI’s price.
One potential reason for this decline in momentum is the recent withdrawal of funds from the market. A significant amount of capital appears to have exited, leading to a reduction in trading activity and market confidence.
Further emphasizing this point, Open Interest has seen a notable decline, losing $94 million in just one week. This reduction in Open Interest reflects a decreasing level of commitment from traders, which could exacerbate the challenges faced by SUI’s price.
SUI’s price at $0.85 is looking at a potential drop to test the support at $0.77. Since this level has been tested as support in the past, there is a chance that the altcoin could bounce back from this point.
Thus, the likely outcome will be consolidation under $0.89, with SUI making efforts to breach the resistance. While the aforementioned factors and broader market cues are bearish, the altcoin could sustain above the support of $0.77.
On the other hand, if the bearish cues dominate, they could pull the altcoin below the aforementioned support line. This would invalidate the bullish-neutral thesis, resulting in a drop to $0.70.
