SUI Token Price Crash Ahead? Crypto Expert Reveals Red Flags to Watch

SUI, the native token of the Layer-1 blockchain, has dropped more than 30% in just one month, leaving traders worried and wondering what’s next. But this isn’t just a random dip – crypto analyst Jason Pizzino warns that SUI might be following a dangerous pattern, one that led to a major crash in the past. Is another disaster headed our way?

Stick with us as we break down the warning signs and what they mean for SUI’s future.

Pizzino’s Warning: A Familiar Pattern?

According to Jason Pizzino’s analysis, the SUI token is displaying an “overbalance in time and price,” meaning its recent decline has lasted longer and fallen further than previous corrections in this market cycle.

A similar trend was observed in April 2024 when SUI dropped by 58% from its high. If the same pattern plays out, the token could see another round of panic selling.

Recovery or reversal?

Pizzino points out that SUI recently fell to $2.38 before making a brief recovery. However, he believes this rebound might not last long, and the price could drop again. If SUI fails to stay above $2, it could fall to $1.60 or even as low as $1.10 to $1.20, returning to its previous low points.

Why Are Traders Betting Against SUI?

Adding to the concerns, traders in the derivatives market are betting against SUI. The token’s funding rate, which measures the cost of keeping a position open, is currently negative at -0.01%. This suggests that short sellers, who profit when prices fall, are dominating the market.

With many traders expecting the price to keep falling, SUI could face more downward pressure in the short term. As of now, it’s trading at $3.58, showing a small 5.6% increase over the day.

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SUI Price Analysis

Technical indicators also suggest more losses ahead. On the daily chart, SUI has fallen below the 0.50 Fibonacci retracement level, indicating weak support. The Moving Average Convergence Divergence (MACD) has also turned negative, reflecting the bearish sentiment in the market.

If this trend continues, SUI could drop another 25%, possibly reaching the 0.236 Fibonacci level at $2.49.

All hope isn’t lost

Despite the negative outlook, there’s still a chance for recovery. If buyers step in and defend the 0.382 Fibonacci retracement level, SUI could avoid further losses and even recover toward $4.56.

The next few weeks will be crucial in determining whether SUI can stabilize or if it will continue its battle with the bears.

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