Sui Price Prediction: Is SUI Poised to Drop to $2? Latest Price Action Suggests So

Sui (SUI) has given up on a big portion of the gains it experienced since the token started to rally in mid-April as the crypto market experienced a strong correction.

The latest events in the Middle East, including the United States’ decision to bomb three Iranian nuclear facilities, plunged the token below the psychological $3 support.

On-chain data shows that Sui’s transaction volumes have also plunged from a peak of nearly 28 million TXs in late May to just 10.2 million at the time of writing as trading volumes have dried up during this correction.

Despite these setbacks, Sui has been making some interesting progress in expanding the network’s ecosystem and use cases.

OKX Wallet Official X Account – Source: X.com

Recently, they launched xBTC, a Sui-based Bitcoin token that investors can now mint on this blockchain to earn yield via the Navi Protocol and Momentum Finance – two of the largest Sui decentralized finance (DeFi) apps.

Notably, OKX Wallet will now support xBTC on Sui and will likely contribute to attracting millions of dollars in crypto capital to this token and dApps.

Unlocking the untapped potential of the Bitcoin network would be huge for any network that manages to convince investors that their assets are safe. With a market cap of more than $2 trillion, Bitcoin’s mammoth-sized valuation and robust community open up a world of possibilities for DeFi.

To raise awareness and foster the adoption of xBTC, Sui has launched a rewards campaign alongside these three partners (OKX, Navi, and Momentum) that will distribute $2.5 million in rewards among early users.

SUI Breaks Key Support and Confirms Bearish Outlook

In a previous Sui price prediction, we emphasized how a bearish breakout below $3.5 had consolidated the token’s downtrend.

On June 17 when that article came out, the price had reached its $3 support and threatened to break below this level. Daily active accounts within Sui had dropped from around 1.6 million to just 320,000 at the time, emphasizing traders’ fading interest in the token.

SUI/USD Daily Chart (Coinbase) – Source: TradingView

As of now, the price has broken below the $2.9 support and has successfully retested this level already and rejected a move above it.

The 9-day and 21-day exponential moving averages (EMAs) have moved below the 200-day EMA. This ‘death cross’ would confirm our bearish short-term price prediction of $2 for Sui that we shared back then.

Best Entry for a Short Position

Heading to the hourly chart, we can see a couple of areas of support to watch that could be relevant in the near term for a short position.

SUI/USD Hourly Chart (Coinbase) – Source: TradingView

The price seems headed to retest the $2.4 area first where a strong order block was formed during Monday’s session after the cease-fire was announced.

This OB could produce a short-term rebound in Sui. However, with a bearish outlook confirmed in the high time frame, short positions offer the best odds of a positive outcome.

In this lower time frame, the 9-period and 21-period EMAs have also made a ‘death cross’ with the 200-day EMA. This alignment favors a bearish outlook for SUI and confirms an ongoing move to $2.4.

Meanwhile, the Relative Strength Index (RSI) is in a clear downtrend, meaning that bears are in full control of the price action.

A retest of the $2.8 level would offer an attractive entry although the odds of that happening are low. Traders should keep an eye on the price action as a short position at this level would offer a highly attractive risk-reward ratio.