The trading volume of Sui (SUI) has seen a 30% decline over the past 24 hours, as the token struggled to maintain the $2 benchmark after recently achieving a new all-time high.
In light of this situation, traders who were hoping for a swift ascent to $3 have adjusted their forecasts. This on-chain analysis delves into the factors contributing to this change and what the future might hold for SUI.
Decreasing Interest in Sui
On October 24, the trading volume for Sui exceeded $700 million. However, at the time of writing, it has fallen to $503.32 million, signifying a 30% reduction in the specified period.
Crypto trading volume reflects how often an asset is traded within a defined timeframe. Investors utilize this metric to assess the level of buying and selling activity for the asset at any moment.
Therefore, the decline in SUI’s trading volume suggests that market interest is waning. Generally, decreasing volume during a price rebound signals bearish sentiment. If this trend continues, SUI’s price might drop below the $1.91 mark.
Read more: A Comprehensive Guide to the 10 Best Sui (SUI) Wallets in 2024
Supporting this viewpoint, data from Coinglass indicates that the 24-hour Long/Short Ratio is currently under 1. This ratio serves as a barometer of investor sentiment; a reading above 1 suggests more long positions—speculators betting on price rises—than short positions.
A figure below this level implies a different sentiment. Even though the Long/Short Ratio is also close to 1, this indicates that the average trader is not necessarily bearish but is likely adopting a wait-and-see approach until there is clarity on SUI’s price movement.
SUI Price Forecast: No Recovery Yet
According to the daily chart, SUI’s price has slipped below the 20-day Exponential Moving Average (EMA) for the first time since April. The last occurrence of this event resulted in a 62% price decline over four months.
This doesn’t guarantee a repeat of that situation; however, it does seem unlikely that the altcoin will regain strength in the near term. Currently, the token could face a double-digit decline, potentially bringing its price down to $1.64.
Read more: Everything You Should Know About the Sui Blockchain
Conversely, if Sui’s trading volume were to increase, this outlook could change. In such a case, buyers would need to demonstrate buying strength to counteract selling pressure from bears. If successful, the altcoin’s value could rise to $2.37.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis is purely informational and should not be seen as financial or investment advice. BeInCrypto is dedicated to providing accurate, impartial reporting, but market conditions may change without notice. Always perform your own research and consult a professional before making any financial decisions. Note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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