Ifthecurrenttechnicalsetupisanyindicationtofollow,Sui(SUI)couldseeitspricedropbelow$2.OnOctober14,thetokenoftheLayer-1Move-programmedblockchainreachedanewall-timehighof$2.36.
Sincethen,thealtcoinhasfacedchallengesinmovinghigher,andthisanalysisexplainswhySUImightbepoisedforanextendedcorrection.
SuiSlidesDowntheAscendingChannel
AlookattheSUI/USD4-hourchartshowsthatthetokenhasbeentradingwithinarisingparallelchannelsincelastmonth.Therisingparallelchannelpatternformswhentradersconnecthigherhighsandhigherlowswithtwoascendingparalleltrendlines.Theuppertrendlineconnectsthehighs,whilethelowertrendlineconnectsthelow
Thistechnicalpatternistypicallyabullishsignal,suggestingthatacryptocurrency’svaluecouldincrease.However,thisonlyoccursifthepriceremainsabovethesupportlineofthelowertrendline.
InSUI’scase,thelowertrendlinesupportisat$2.03,andasshownbelow,SUI’spriceisapproachingthatzone.Ifthepricedropsbelowthislevel,asignificantdownswingcouldfollow.
Sui4-HourPriceChart.Source:TradingView
Additionally,thesametimeframerevealsthattheBullBearPower(BBP)hasturnednegative.TheBBPisatechnicaloscillatorthatmeasurestherelativestrengthofbuyersversussellersinthemarket.
WhentheBBPispositive,bullsdominate,andthepricetendstorise.Conversely,anegativeBBPindicatesthatbearsareincontrol.Asseenbelow,theBBPhasexperiencedasharpdecline,suggestingthatSUIbearscouldpushthepricelower.
SuiBullBearPower.Source:TradingView
SUIPricePrediction:NoWayOutoftheDrop
Meanwhile,thedailychartalsoappearstobeinlinewiththebearishbias.Forinstance,theMovingAverageConvergenceDivergence(MACD)hasdroppedtothenegativeregion,justliketheBBP.
ItishistoricallyagoodstrategytobuywhentheMACDrisestothepositivezone.Thisisbecausethereadingduringthatperiodmeansthatmomentumisbullish,andpricescanrise.However,anegativeMACD,asitiswithSUI,impliesthatmomentumisbearish,indicatingasellsignal.
Becauseofthiscondition,SUI’spricemightlikelyexperiencea10%declinethatcouldtakeitto$1.83.Inahighlybearishconditionandvolatilemarket,thealtcoinmightdropaslowas$1.64.
SuiDailyPriceAnalysis.Source:TradingView
Butifbullscomeintothepicture,thispredictionmightbeinvalidated.Inthatcase,SUImightbounceto$2.36again.
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