Can SUI Fall To $1.40? On-Chain Data Exposes Declining Demand
05 Ottobre 2024 - 4:30PM
NEWSBTC
SUI is currently testing a crucial supply zone following a massive
95% surge triggered by the Federal Reserve’s recent interest rate
cut announcement. The explosive rally, driven by significant buying
pressure, has led to volatile price action, raising questions about
whether this upward momentum can be sustained. As SUI hovers
near its current highs, market speculation is increasing around the
possibility of a correction to lower demand levels, with $1.40
being the key target. Related Reading: Solana ‘In Serious Danger’
If $137 Support Breaks – Analyst Shares Targets Key data from
Coinglass reveals a decline in market demand, signaling a potential
slowdown in buying activity. This has left some investors on edge,
as they anticipate a price drop in the coming days. The sudden
surge has fueled both optimism and caution as traders weigh the
potential for continued gains against the risk of a sharp
reversal. With SUI now at a critical juncture, the next few
days will be pivotal in determining whether the bullish trend can
continue or if the market will retrace to more stable demand
levels. Investors are watching closely, ready to adjust their
strategies based on the unfolding price action. SUI Funding Rate
Signals Price Drop SUI is at a critical point after days of
extreme price action and significant gains. Following its
impressive 95% rally since the Federal Reserve’s interest rate cut
announcement, some investors and traders are beginning to take
profits, signaling a potential shift in market sentiment. Many now
view a correction to $1.40 as inevitable, especially as buying
pressure cools down. Key data from Coinglass suggests a cooling
demand, with the funding rate turning negative to -0.067, marking a
yearly low. The funding rate is a key indicator in futures trading,
representing the periodic payment between traders in long positions
(betting on price increases) and those in short positions (betting
on price declines). When an asset’s funding rate turns
negative, it indicates that more traders are opening short
positions, expecting a drop in price. This shift reflects growing
caution in the market as traders start positioning themselves for a
potential downturn. Related Reading: Ethereum At Risk Of Further
Decline: Top Investor Sets $2,150 Target If Support Breaks With the
funding rate at such a low 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 patiently waiting for a
correction to lower demand levels around $1.40, which could present
new buying opportunities or signal further declines depending on
the broader market conditions. Key Levels To Watch 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 and
has since entered 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, and if the price fails to
hold the $1.60 support level, a deeper correction could follow.
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. Related Reading: Cardano (ADA)
Faces Risk Of 30% Drop – On-Chain Metrics Confirm A Slow Demand 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. Featured image from Dall-E, chart from TradingView
Grafico Azioni Solana (COIN:SOLUSD)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Solana (COIN:SOLUSD)
Storico
Da Nov 2023 a Nov 2024