SUI Price Surges, But Bearish Signals Persist

SUI Price Surges, But Bearish Signals Persist

The SUI token surprised the market yesterday by delivering the strongest performance among altcoins. However, this bullish breakout might not be as promising as it seems. Bearish indicators are still looming, and SUI may soon feel their impact.

SUI Breaks the Downtrend Line

The recent surge in SUI’s price allowed the altcoin to break through a downtrend that had persisted for nearly four months. Notably, this downtrend line, when considered alongside the Relative Strength Index (RSI), is now forming a hidden continuation divergence.

Typically, this pattern signals a bearish outcome, suggesting that the overall downward trend could persist. As the hidden continuation divergence develops, it strengthens the possibility of a continued drawdown, potentially pushing SUI back below the downtrend line.

This scenario indicates that the price might continue to face downward pressure.

Adding to the bearish outlook is SUI’s negative funding rate, which further underscores the pessimistic sentiment. A negative funding rate often reflects that more traders are betting against the asset, which can contribute to downward price pressure and reinforce bearish trends.

The ongoing negative funding rate highlights increasing bearishness among investors regarding SUI’s future performance. As more traders align with this sentiment, the negative outlook could be amplified, potentially leading to further price declines.

SUI Price Prediction: More Downside Likely

The recent uptick in SUI’s price may be short-lived, with the altcoin potentially heading back down to test support at $0.779. The bearish indicators mentioned above suggest that SUI lacks the strength to counter the prevailing market negativity.

If this sentiment deepens, SUI could decline toward $0.707. A further drop below the $0.707 support could see the price fall to $0.639, erasing the entire 38% gain from yesterday.

However, if investor sentiment shifts and the asset manages to hold above $0.779, SUI might attempt to breach $0.894. This move would invalidate a two-month-old resistance level and challenge the bearish outlook.