SUI Faces Potential 30% Correction Amid Bearish Market Sentiment

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SUI, the native token of the Sui Network, has experienced a 13% decline over the past week, interrupting its upward momentum. The cryptocurrency fell from a one-month structure, creating a bearish outlook among market observers who anticipate further declines for the token.

SUI Loses Critical Support Zone

This week, SUI has been trending downward, losing recently acquired levels alongside the majority of the market. The token recorded a 5.3% drop in the last 24 hours, raising concerns among some investors and cryptocurrency analysts.

In Q3, SUI demonstrated one of the strongest performances, leading the market as one of the few altcoins showing positive results across most timeframes. The token began the month with a 15% weekly increase, driving its rally towards a new all-time high (ATH).

Additionally, SUI saw a 25% rise from its monthly start, surpassing the $2 threshold to reach a new height of $2.35. However, its bullish trajectory was marred by allegations of insider selling on October 13.

Market analyst LightCrypto claimed that SUI’s performance might suffer due to ongoing insider selling, citing that $400 million worth of SUI tokens had been unloaded.

Following these allegations, the cryptocurrency saw a 15% daily correction but managed to stay above the significant $2 support level. Since then, it has traded sideways within the $2-$2.15 price range until today.

On Tuesday morning, SUI fell below the $2 support level, dropping 6.5% to the $1.87 mark before rebounding to the $1.90 range. This dip represented a 13% decrease from its price a week ago and an 18.4% drop from its ATH.

Is A 30% Pullback Ahead?

In light of SUI’s recent price movements, some crypto analysts suggest that another pullback may be imminent. Crypto analyst Altcoin Sherpa provided insights on the current market behavior, which has slowed down since Bitcoin’s rise to $69,000 on Sunday.

Sherpa believes that the market’s rally is temporarily paused, noting that “most altcoins are either consolidating or pulling back.” He suggests that tokens that had a strong performance in September, including Bittensor (TAO) and SUI, might “experience a bit more pullback” before continuing their upward trends.

The analyst predicted a correction of 25% to 30% targeting the $1.4 support zone or lower, explaining that there would likely be “many bounces” throughout. Similarly, crypto investor Doji remarked that the cryptocurrency has breached “a significant one-month structure to the downside.”

The investor indicated that the token has fallen below the lower trendline of a broadening wedge pattern observed on its one-month chart. Doji anticipates that SUI will attempt to retest the pattern before dropping further toward a liquidity area at $1.4. Nonetheless, he expects “to see the median of the macro range at some point.”

Despite the decline, SUI noted a 30.7% increase in the monthly timeframe, trading at $1.92 at the time of writing.