Sui Price Prediction: SUI Breaks Below $3 Again – Is The Rally Over?

The latest developments in the Middle East along with Wednesday’s interest rate decision meeting by the U.S. Federal Reserve may have rattled the markets and could have pushed participants to adopt a more cautious approach this week.

SUI was, at some point, one of the top-performing tokens of the top 10 as it broke through the $4 level.

SUI Transaction Volumes Dry Up

On-chain data shows that the market may have lost interest in the network, possibly amid the absence of positive news that could support a rally to the $5 area.

In the past month, SUI has shed nearly a quarter of its value. Data from Sui Vision shows that daily transaction volumes in the Sui network have declined from 19.3 million TXs to just 9 million at the time of writing.

Meanwhile, daily active accounts have dropped dramatically from 1.66 million to 320,000, showing that speculative activity with the SUI token has dried up.

Despite this significant drop in traders’ interest, the futures market is still heavily exposed to the token, possibly as speculators believe that Sui could retest its latest local high of $4.

Data from CoinGlass shows that open interest currently sits at $1.2 billion, meaning a 40% drop from this year’s peak OI of $2 billion. However, this figure is still higher than the $1.2 – $1.5 billion worth of outstanding contracts that were in circulation back in the first quarter.

Key Levels to Watch for SUI

In a recent price prediction, we share a few key levels to watch for SUI as the token broke below the $3.2 mark.

These levels were the $3 psychological threshold and the $2.8 area. These levels have held quite well since that article came out 11 days ago as SUI has bounced off them multiple times already.

However, the token is once again retesting the $2.8 support today and, as we mentioned back then, a break below this area could push SUI to the $2 level next.

The token’s short-term exponential averages (EMAs) in the daily chart are all pointing downwards and the short-term EMAs seem poised to break below the 200-day EMA, which would confirm a bearish outlook for SIU that could push it to $2.

Momentum indicators show that the downtrend is strong enough to pull this kind of move as the Relative Strength Index (RSI) has now dropped to 38 – quite near to oversold levels. A breakout below $2.8 followed by a failed retest would confirm this move.

Heading to the lower time frame we can see that a new resistance has popped up at the $3.10 level as the price retested this previous lower low from the downtrend and rejected a move above it.

A bearish ‘death cross’ between the short-term EMAs and their long-term peer has already occurred in this time frame. Hence, a retest of $2.8 seems inevitable at this point.