Sui Analysis: Bears are active, price could drop 10%

If the current technical configuration is a sign to watch, Sui (SUI) may drop below $2. On October 14, the token of the Move-programmed Layer-1 blockchain reached a new all-time high of $2.36.

Since then, this Altcoin has struggled to gain value, and this analysis explains why SUI may have to make a prolonged adjustment lower.

Sui Slides into an Ascending Channel

Looking at the 4-hour SUI/USD chart shows this token has been trading within an ascending parallel channel since last month. The ascending parallel channel pattern forms when traders connect higher highs and higher lows with two parallel ascending trend lines. The upper trend line connects the highs, while the lower trend line connects the Dips.

This technical pattern is often a bullish signal, indicating the cryptocurrency's value may increase. However, this only occurs if the price remains above the support of the lower trend line. In the case of SUI, the lower trend line support is at $2.03, and as shown below, the SUI price is approaching that area. If the price drops below this level, a sharp Dump could occur.

Additionally, the same timeframe shows the Bull Bear Power (BBP) has turned negative. BBP is a technical oscillator that measures the relative strength of buyers versus sellers in the market. When BBP is positive, the Bull is in control, and prices tend to rise. Conversely, negative BBP indicates the Bear is in control. As seen below, the BBP has dropped sharply, suggesting the SUI Bear may push the price lower.

SUI Price Prediction: Decline Likely Unavoidable

Meanwhile, the daily chart also appears to align with a downtrend. For example, the MACD indicator has dropped into negative territory, similar to the BBP. Typically, a good strategy is to buy when the MACD rises into positive territory. This is because the indicator at that time shows momentum is increasing, and prices may rise. However, negative MACD, as in the case of SUI, indicates decreasing momentum, a sell signal.

Given this condition, the SUI price may decline around 10%, potentially reaching $1.83. In a severe Dump and volatile market, this Altcoin could drop to $1.64.

But if the Bull returns, this forecast could be invalidated. In that case, SUI could bounce back to $2.36.

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