The SUI price has shown an upward trend recently, leading some to speculate about a potential new all-time high (ATH). However, recent shifts in investor sentiment indicate that this altcoin may face challenges in achieving this milestone.
A major concern for SUI’s price action is the tightening of the Bollinger Bands, which signals an impending volatility squeeze. A squeeze occurs when the bands narrow, usually followed by a sharp price movement either up or down. The significant drop in trading volume further confirms that a squeeze is approaching.
This upcoming squeeze could lead to increased volatility for SUI. While a rally is possible, a price drop is equally likely. The current lack of volume suggests waning investor activity, indicating insufficient support for pushing the altcoin to a new ATH.
SUI's macro momentum also raises concerns. The Moving Average Convergence Divergence (MACD) indicator shows early signs of a bearish crossover, typically signaling a trend reversal towards the downside. This would mark the first bearish MACD crossover for SUI in nearly a month, indicating that the volatility from the squeeze might favor the bears.
With this bearish crossover, the likelihood of SUI’s price facing downward pressure increases. This reinforces the argument that SUI may not be poised to form a new ATH in the near term. The convergence of technical indicators suggests caution for investors.
SUI’s price is currently hovering around $1.74, just above the critical support level of $1.70. If this support level is breached, the altcoin could fall further, leading to a larger price decline.
Considering the current technical indicators, a drop to $1.45 seems plausible, and if selling pressure increases, this could extend to $1.16. Such a movement would significantly diminish the chances of SUI reaching a new ATH anytime soon.
However, if the broader market displays bullish strength and overrides the current bearish sentiment, SUI could rise to $2.18. Surpassing this level would invalidate the bearish outlook and pave the way for SUI to establish a new all-time high.
