Sui (SUI) Tumbles 11% to $1.58 Amid Market Deleveraging and Lingering Network Concerns
Sui (SUI) is trading at about $1.58, which is almost 11% less than it was 24 hours ago. This is a lot worse than the rest of the crypto
Quick overview
- Sui (SUI) is currently trading at $1.58, down nearly 11% in the last 24 hours, significantly underperforming the broader cryptocurrency market.
- The recent price drop is attributed to market risk aversion, concerns over network reliability following a major outage, and a technical breakdown below key support levels.
- Despite bearish momentum, a potential bull flag pattern suggests that SUI could target $2.30 if it breaks above $1.84.
- The next 48 hours are critical for SUI, as maintaining the $1.60 support level could lead to a recovery, while failure to do so may result in further declines.
At the time of writing, Sui (SUI) is trading at about $1.58, which is almost 11% less than it was 24 hours ago. This is a lot worse than the rest of the cryptocurrency market, which fell 2.7% during the same time period. The Layer-1 blockchain token has dropped 13.7% in the last week, although it is still up 8.1% over the last month.
The latest drop in prices seems to be caused by a number of things, such as a general lack of risk appetite in the market, worries that haven’t been addressed since the network’s second major outage, and a technical breakdown below important support levels that has sped up bearish momentum.
Bitcoin Decline Sparks $680 Million Liquidation Cascade
Bitcoin’s 3% decrease to $92,500, which caused almost $680 million in liquidations across cryptocurrency exchanges, was the main reason for SUI’s significant dip. Because SUI is a high-beta asset, it felt more selling pressure as traders cut back on riskier altcoins during the deleveraging event that mostly happened during Asian trading hours.
The CoinDesk Altcoin Season Index dropped 3.7% in 24 hours, which means that money is moving out of risky assets like SUI and into cash and stablecoins. 90% of the liquidations were long positions, and the forced selling set off a chain reaction that sped up SUI’s collapse beyond what market fundamentals alone might have predicted.
Sui Network Reliability Questions Resurface After January Outage
The most recent pricing changes were caused by current market conditions, but investors are still worried about network stability. On January 14, Sui’s mainnet went down for six hours, which was the blockchain’s second major disruption since 2023. This locked nearly $1 billion in on-chain currency and briefly stopped decentralized apps.
Because of this reliability problem, SUI has not done as well as other Layer-1 networks like Solana, which has been able to solve comparable problems in the past few months. The incident made many wonder about how well validators work, and there may be doubt until Sui releases a full report on the incident that explains what happened and how it may be avoided in the future.
SUI/USD Technical Analysis: Breaking Down Below Key Support Levels
From a technical point of view, SUI’s price movement has become very bearish. The coin fell below the important $1.60 support level, which is the 61.8% Fibonacci retracement line from its most recent surge. This breakdown set off stop-loss orders and made selling pressure stronger. Trading volume shot up 128% to $938 million, showing that negative sentiment was high.
The Relative Strength Index (RSI) is currently at 38.37, which means that the market is oversold and could rebound back in the near future. But the MACD indicator still shows bearish momentum, and SUI is currently trading below all of the important moving averages, including the 7-day simple moving average of $1.79. The technical structure strongly favors bears until the price can get back to the $1.60 level in the next few sessions.
Sui Price Prediction: Analyst Eyes $2.30 Target on Bull Flag Pattern
Ali Martinez, a well-known crypto analyst, has found a possible bull flag pattern building on SUI’s 4-hour chart, even if the market is currently down. This technical pattern, which is made up of a sharp rise followed by sideways consolidation, frequently means that the trend will continue in bullish markets.
Martinez says that if SUI breaks out over $1.84, it might reach a target of $2.29, which would be a gain of almost 30% from where it is now. The bull flag pattern usually ends when the price breaks above the top of the consolidation range. The objective is found by adding the height of the flagpole to the breakout point.
SUI Outlook: Critical 48-Hour Window Ahead
The next 48 hours will be very important for SUI’s short-term path. If the token can get back to the $1.60 support level as market sentiment settles down after the recent deleveraging event, it might set the stage for the positive scenario that technical analysts have described. But if it doesn’t hold at these levels, it could go down even more, even hitting support around the $1.40-$1.50 zone.
Investors should keep a close eye on Bitcoin’s price movements since the stability of the broader market leader will be important for risk assets like SUI to make a lasting comeback. Also, any news from the Sui Foundation about the downtime on January 14 could have a big effect on how people feel and how prices move.
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