Sui Price Drops 6% Despite Surging Daily Inflows, Is the Correction Over?

As a seasoned researcher with over two decades of experience in the ever-evolving realm of cryptocurrencies, I find myself intrigued by the current state of Sui (SUI). The 6% drop in its price within the last 24 hours has piqued my curiosity, especially considering the surge in daily inflows that have overshadowed even heavyweights like Ethereum and Solana.


Even though Sui’s price decreased by 6%, an unexpected increase in daily investments has sparked interest among investors. This contrasting situation has generated questions about Sui’s current position and if the correction period might be over. An analyst, however, advises against being swayed by hype, suggesting that the price of SUI could potentially fall another 20% before a rebound happens.

Why Is Sui Price Crashing?

The price of SUI has been down 6% in the last 24 hours and is trading at $1.73 as of 3:52 a.m. EST. After being rejected at the $2.25 mark, the price took a bearish note. Traders noted this buyer exhaustion and began locking in profit, causing the price to drop further. 

Sui Price Drops 6% Despite Surging Daily Inflows, Is the Correction Over?

Price continues its downward moment despite Bitcoin showing strength and surging to $68,411. The entire crypto market is up 0.3% in the last 24 hours, hovering around $2.428 trillion.

Daily Inflow Surpasses Ethereum (ETH), Solana (SOL) and Base 

Crypto expert Kyle Chase highlights that Sui is thriving, exceeding other decentralized networks in terms of daily inflows.

OMG CHECK THIS OUT!! $SUI IS STILL GOING STRONG, TOPPING ALL OTHER CHAINS IN DAILY INFLOWS!

— Kyle Chassé / DD (@kyle_chasse) October 28, 2024

As a researcher, I’ve observed that users are transferring funds from other blockchain networks to Sui, which indicates a positive trend. Over the past three months, SUI has managed to secure the third position, outperforming Ethereum (ETH), Avalanche (AVAX), and Fantom (FTM) based on data provided by Artemis analytics. This suggests that Sui is gaining traction and could potentially be a promising choice for users in the blockchain space.

Sui Price Drops 6% Despite Surging Daily Inflows, Is the Correction Over?

“This on-chain indicator strengthens the argument for a potential change in the SUI price trend. Moreover, Sui has outlined a schedule to address their staking distribution issue, which might lead to a reversal in the price movement.

Will SUI Drop Another 20%?

A leading investor anticipates that SUI could see a 20% decrease, potentially falling within the $1.3-$1.36 price range. This prediction comes following SUI’s peak at $2.35 two weeks ago, which set a new record and pushed its market capitalization over $6 billion for the first time.

The SUI 24-hour trading volume has surged by 12.2%, suggesting a recent rise in market activity per Santiment data. When volume is rising, but the price is falling, it often indicates strong selling pressure in the market.

Sui Price Drops 6% Despite Surging Daily Inflows, Is the Correction Over?

Furthermore, data from Coinglass’s crypto derivative visual screener suggests traders are liquidating their SUI Long contracts with losses. This typically means they will open Short positions, signaling that the SUI price could potentially decline in the near future or at least until it reaches a robust support level.

Sui Price Drops 6% Despite Surging Daily Inflows, Is the Correction Over?

 

Based on technical analysis, it’s predicted that the price may temporarily drop, with an estimated decline ranging from 8% to 20%. However, it’s expected to recover afterwards.

SUI Price Analysis: Is the Correction Over?

According to the Sui chart, the crypto asset continues to trend positively because it’s currently trading above its 20-day exponential moving average (EMA). This essential indicator often serves as a strong foundation for financial assets. As a result, as long as trading activity remains above this benchmark, investors can feel reassured.

At present, the 200 Exponential Moving Average (EMA) hovers near $1.44, indicating a potential decrease in price towards this point. Notably, this support aligns with the 61.8% Fibonacci retracement level approximately at $1.36.

At the present cost, candlestick formations indicate that bulls are making an effort to maintain the price above the $1.74 level, which corresponds to 38.2% Fibonacci retracement levels. However, there appears to be significant resistance from sellers.

Key support levels to watch out for include $1.74, $1.44, and $1.36.

Sui Price Drops 6% Despite Surging Daily Inflows, Is the Correction Over?

Bulls can invalidate this bearish thesis by pushing the price above $2.36 and establishing new all-time highs for the asset. 

Sui’s price trend is generally upward, but at the moment, it’s experiencing a retreat as investors cash out their gains. This is quite typical and may lead to a stronger rise following the downturn.

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2024-10-28 12:50