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The SUI price has fallen since May and reached a new all-time low on October 18.
The all-time low occurred despite the Total Value Locked (TVL) in the platform reaching a new all-time high. Is SUI in jeopardy of falling out of the top 100 cryptos?
SUI Falls to New All-Time Low
The SUI price has fallen significantly since its all-time high of $1.50 on May 4. In a span of 167 days, the price has decreased by 76%.
The decrease culminated with a new all-time low of $0.36 today.
Since June 10, the decrease has become more gradual. Also, it has been contained inside a descending wedge, considered a bullish pattern.
The fact that the price reached a new all-time low is especially interesting when considering that the Total Value Locked (TVL) is actually at a new all-time high of $59 million.
TVL has increased significantly since August, bottoming at $13 million.
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So, despite an increased interest in the platform, the altcoin’s price has not reacted positively at all.
Yesterday, the Sui Foundation addressed a previous report that stated the foundation had sold a considerable amount of its SUI tokens and was actively manipulating the supply.
The foundation called these reports false, urging the public to check for themselves by looking up the data on the blockchain.
The SUI foundation also noted that more than $1 million had been given in grants to fifteen projects that work on products and services in gaming, Decentralized Finance (DeFi), commerce, and tooling.
However, this has not completely squashed the worries of the public. Questions about the transparency of the SUI foundation and the lack of clarity as to what the accusations are immediately popped up after the post.
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SUI Price Prediction: When Will a Bottom be Reached?
When evaluating market conditions, traders use the Relative Strength Index (RSI). The RSI is pivotal in helping investors identify momentum to make informed asset buying or selling choices.
During an uptrend, bulls consider an RSI above 50 a positive sign, while they regard a figure below 50 as bearish.
Bulls still have an advantage if the RSI reading is above 50 and the trend is upward. But, if the reading is below 50, the opposite is true.
The RSI currently gives a bearish reading for the SUI price since it is below 50 and falling. Also, it has broken down from its ascending support trendline (green), another bearish sign.
According to the Fibonacci retracement levels theory, following a significant price change in one direction, the price is expected to partially return to a previous price level before continuing in the same direction.
This theory can also be used to identify the bottom for future downward movements.
Since the SUI price is at an all-time low, the use of the Fib retracement tool is required to determine potential areas for a bottom. The 1.61 external Fib level of the previous increase is at $0.34.
Since this coincides with the wedge’s support line, it is a suitable level for a bottom.
A well-known crypto analyst believes that the price will bottom soon. He stated that he would buy more if the price fell to $0.30.
Therefore, the future SUI price prediction depends on whether the price will bounce at the $0.34 confluence of support levels or if it will break down from the wedge instead.
A bounce can lead to a 30% increase in the wedge’s resistance line at $0.45. On the other hand, a breakdown could cause a 55% drop to $0.16.
For BeInCrypto’s latest crypto market analysis, click here.