Despite its recent listing on Robinhood, the leading crypto platform in the United States, Sui token's price has dropped nearly 4%. Dive into the reasons behind this decline, market trends, and the technical outlook for Sui, an ambitious cryptocurrency struggling to sustain its momentum.
The Sui token has experienced a series of declines in recent days, reaching its lowest level since August 7 and falling 21% below its yearly high. This drop comes even as Sui was just listed on Robinhood, an event typically viewed as positive for a cryptocurrency’s price. So what explains this unexpected decline?
First, Sui’s price drop is part of a broader cryptocurrency market depression. Bitcoin has plunged to $113,000, dragging down the total market capitalization to below $4 trillion.
Second, third-party data shows waning demand for Sui. The 24-hour trading volume has fallen by 10%, and investors are withdrawing their tokens from staking pools, causing the total value locked in Sui’s DeFi ecosystem to decrease by 4.15%.
Finally, Sui’s price decline coincides with a retreat in its stablecoin’s market cap, which has lost 12.8% of its value in one week, indicating a slowdown in its ecosystem.
The upcoming launch of the Monad blockchain mainnet in the coming weeks could even accelerate SUI’s decline.
Nevertheless, at the on-chain data level, SUI displays convincing results for the long term.
From a graphical perspective, the Sui token has fallen below its 50-period moving average, forming a bearish head and shoulders pattern. Technical indicators such as the Supertrend, RSI, and MACD also confirm the continuation of the downward trend.
Additionally, the daily chart clearly shows rejection from the liquidity zone between $4.14 and $4.43. This indicates that smart money is protecting this high and wants to keep SUI in a medium-term downtrend. A bounce on the trendline at $2.86 remains possible.
If Sui fails to quickly stabilize above $3.56, the base of its northern uptrend line, it risks continuing its fall and sinking below $3.
Analyzing liquidity zones, SUI should return to its last low at $2.13 in the coming weeks. That’s a decline of over 30% from its current price.
Although Sui’s listing on the Robinhood platform is generally perceived as good news, other factors currently seem to be weighing on the price of this promising cryptocurrency. Decreasing demand, the retreat of its DeFi ecosystem, and correlation with the global crypto market are all factors explaining this unexpected drop.
To take advantage of SUI’s potential decline and generate nearly 200% profit if the downward trend continues on ByBit, follow these steps:
Tip: Enable two-factor authentication (2FA) and rigorously manage your risk, especially with high leverage, as SUI’s volatility can amplify losses. Additionally, only invest what you are willing to lose
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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