SUI Price Correction Looms: Is $1.40 on the Horizon?
SUI’s Recent Rally Faces Headwinds: Is a Correction Coming?
Following a meteoric 95% surge fueled by the Federal Reserve’s recent interest rate cut announcement, SUI is now testing a critical supply zone. This explosive rally, driven by intense buying pressure, has left many wondering if the momentum can be sustained. As SUI hovers near its recent highs, market speculation is mounting about the possibility of a correction, with $1.40 emerging as a key target.
On-chain data from Coinglass reveals a cooling demand, signaling a potential slowdown in buying activity. This has sparked concerns among some investors, who anticipate a price drop in the coming days. The rapid rise has created a mixture of optimism and caution, as traders weigh the potential for further gains against the risk of a sharp reversal.
SUI Funding Rate Points to a Potential Downturn
SUI is currently at a pivotal juncture after experiencing intense price action and significant gains. Following its impressive rally, some investors and traders are starting to take profits, hinting at a potential shift in market sentiment. Many now view a correction to $1.40 as a likely outcome, particularly as buying pressure cools down.
Coinglass data suggests a declining demand, with the funding rate turning negative to -0.067, marking a yearly low. The funding rate, a key indicator in futures trading, represents the periodic payment between traders holding long positions (betting on price increases) and those holding short positions (betting on price declines). A negative funding rate indicates that more traders are opening short positions, expecting a price drop.
This shift in sentiment reflects growing caution in the market as traders begin to position themselves for a potential downturn. With the funding rate at such a low level and demand waning, the market is showing signs of cooling off after SUI’s explosive September rally. As a result, investors and traders are now waiting for a correction to lower demand levels around $1.40, which could present new buying opportunities or signal further declines depending on broader market conditions.
Key Levels to Watch: A Delicate Balance
SUI is currently trading at $1.73 after experiencing days of volatile price action. The price surged but halted at the crucial $2 resistance level, entering a consolidation phase just below it. This key level has become a barrier for bulls, and a push above $2 is necessary for SUI to regain momentum and confirm a bullish trend.
However, the market remains uncertain. If the price fails to hold the $1.60 support level, a deeper correction could ensue. Analysts predict that a break below $1.60 may lead to a 20% drop, bringing SUI down to the $1.40 demand zone. This level is being closely monitored by investors and traders as a critical support to prevent further downside pressure.
As the market fluctuates, SUI’s price action remains in a delicate balance between potential recovery and further correction. The next moves around these key levels will likely determine whether bulls regain control or if bears continue to push prices lower in the coming days.