Despite a massive surge in trading activity, the SUI cryptocurrency finds itself in a precarious position, displaying a strong bearish outlook across multiple indicators. A recent price plunge, coupled with critical on-chain and technical breakdowns, suggests that downward pressure is likely to continue for the asset.
Market Dynamics and On-Chain Weakness
Recent market movements for SUI paint a grim picture, with its price plummeting by 22% in a single day. Intriguingly, this sharp decline was accompanied by an extraordinary 350% increase in trading volume, signaling aggressive selling pressure as market participants actively drive the price lower amidst escalating bearish sentiment. Further reinforcing this weakness are crucial on-chain metrics; the Total Value Locked (TVL) on the Sui network has dropped significantly by nearly 19%, indicating a withdrawal of funds and a clear reduction in investor confidence. Concurrently, a record spike in DEX volume points towards widespread panic selling and investor exits from the ecosystem.
Technical Breakdown and Future Outlook
From a technical perspective, SUI has breached a critical ascending trendline that had supported its bullish trajectory since August 2024, signaling a definitive shift to a bearish trend. Currently, the asset is trading sideways within a narrow range, but the potential for a substantial further decline, possibly reaching $1.65, looms large if current momentum persists. Technical indicators such as the Average Directional Index (ADX) confirm weak trend strength below the key threshold of 25, while the Supertrend indicator remains firmly bearish, suggesting continued downward pressure. For SUI to stage a recovery, it would need to reclaim the $3 level and break back above its established ascending trendline, conditions that appear challenging in the immediate term.
