Price Forecast for SUI: Possible 7% Decline Expected
SUI is currently testing the $3 support level once again, a level that has shown significant importance in the past. In a previous instance, SUI tested this support before experiencing a bounce of around 20% and reaching the supply zone at $3.6.
However, the likelihood of a similar bounce occurring immediately seems low, especially considering the overall market conditions.
Impact of Liquidity on SUI Price Movement
Analysis of the price action on different timeframes indicates a retracement phase, with swing points identified at $1.75 and $5.24 on the weekly chart.
Recent data from daily and lower timeframes suggest a growing bearish sentiment over the past month.
The Awesome Oscillator is displaying red bars on the histogram, signaling increased downward pressure. Despite this, the Chaikin Money Flow (CMF) has not yet dropped below -0.05, which would indicate significant outflows of capital.
While selling pressure and bearish momentum are dominant, there is a possibility that the downtrend could find support around the $3 or $2.43 levels, critical areas identified by Fibonacci retracements.
An examination of the liquidation heatmap over three months highlights liquidity pockets at $2.84 and $3.9, with relatively fewer concentrations at $3.2 and $3.53.
Similar findings are observed in the two-week liquidation heatmap, further emphasizing the significance of the $2.84 zone as a short-term target for price action.
It is probable that SUI prices will gravitate towards this level before any potential recovery takes place.
On the upside, liquidation levels are sparser until the $3.37-$3.53 range, indicating the possibility of a swift bounce from $2.84 to $3.52, contingent on broader market sentiment.
Disclaimer: The views expressed are solely the author’s opinion and do not constitute financial, investment, or trading advice.