Sui, the native token of the Layer-1 (L1) blockchain Sui Network, has experienced a parabolic rally over the past month, reaching $1.73 — a 120% increase in 30 days. However, market indicators signal that this rally might not last, as SUI holders are starting to sell for profit. This analysis examines potential price targets if SUI's demand continues to decline.
A notable indicator of the negative shift in sentiment toward SUI is its funding rate, which sits at a multi-month low of -0.067%. The funding rate is the periodic payment between traders who hold long positions (expecting the price to rise) and those holding short positions (expecting the price to fall). When an asset’s funding rate is negative, traders are increasingly opening short positions as they expect its price to drop.
SUI’s sudden drop in funding rate reflects the shift in sentiment from bullish to bearish. Traders believe the price will likely decline and have begun to position themselves to profit from it. Moreover, SUI’s plummeting Chaikin Money Flow (CMF) confirms the falling buying pressure. As of this writing, the CMF stands at 0.02, trending toward the zero line, indicating less buying interest.
Readings from SUI’s moving average convergence/divergence (MACD) indicator highlight the strengthening selling pressure in the market. The coin’s MACD line is poised to fall below its signal line, hinting at a bearish reversal. If the downtrend continues, SUI’s price could drop by 50%, retesting support at $0.86. Failure to hold this level could push the price further down to $0.46.
Conversely, if demand resurges and profit-taking eases, SUI might climb to $2.17, a level last seen in March.
