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SUI, the native token of the Sui network, saw a 13% decline in the past seven days, halting its bullish rally. The cryptocurrency broke out of a one-month structure, fueling bearish sentiment among market watchers, who expect further declines in the token.
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SUI loses key support area
SUI has been on a downtrend this week, losing recently gained levels along with most of the market. The cryptocurrency saw a 5.3% decline over the past 24 hours, which has some investors and cryptocurrency analysts concerned.
The coin posted one of the best performances during the third quarter, leading the market as one of the few altcoins to post green numbers in most time frames. SUI started the month with a weekly rise of 15%, sending it rising towards a new all-time high (ATH).
Additionally, the token has jumped 25% since its monthly open, crossing the $2 barrier to reach a new ETH worth $2.35. However, its upside was overshadowed by allegations of insider selling on October 13.
Market expert LightCrypto claimed that SUI’s performance will be affected by continued selling by insiders, who offloaded $400 million worth of SUI tokens.
In the wake of these allegations, the cryptocurrency faced a 15% daily correction but remained above the crucial support level of $2. Since then, the cryptocurrency has moved sideways, hovering between the $2-2.15 price range as of today.
On Tuesday morning, SUI lost $2 support, falling 6.5% towards the $1.87 mark before recovering to the $1.90 area. The token’s drop represents a 13% decline from its price seven days ago and a 18.4% decline from its ATH.
Is a 30% decline on the horizon?
Following SUI’s recent price action, some cryptocurrency analysts have revealed that another pullback appears to be on the horizon. Cryptocurrency Analyst Altcoin Sherpa His weight On the current performance of the markets, it slowed after the price of Bitcoin rose to $69,000 on Sunday.
Sherpa sees the market rally as having paused, highlighting that “most altcoins are either declining or consolidating.” According to him, tokens that posted strong performances in September, including Bittensor (TAO) and SUI, have “further pullback” before resuming their rally.
The analyst expected a 25% to 30% correction towards the support area of $1.4 or lower, explaining that there will likely be “a lot of bounce” along the way. Likewise, cryptocurrency investor Doji noted that the cryptocurrency broke “a massive one-month restriction to the downside.”
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Investor open That the symbol fell below the lower trend line of the expanding wedge pattern on the 1-month chart. Doji suggested that SUI will retest the pattern before falling towards the low liquidity area at $1.4. However, he expects to “see the middle of the overall range at some point.”
Despite the decline, SUI registered a 30.7% rise on the monthly time frame, trading at $1.92 at the time of writing.
Featured image from Unsplash.com, chart from TradingView.com