Key Takeaways
What signals a bearish outlook for SUI despite increased trading activity?
A 22% price drop, declining TVL, and technical breakdowns suggest continued downward pressure despite a 350% surge in trading volume.
What could reverse SUI’s bearish trend in the near term?
Reclaiming the $3 level and breaking above the ascending trendline could signal a potential bullish reversal.
Sui [SUI] prices dropped amid the broader market crash, bringing an end to its prolonged uptrend and signaling the potential for further declines.
The bearish outlook is reinforced by a drop in Total Value Locked (TVL), key technical breakdowns, and strong market participation, all of which suggest continued downward pressure.
At press time, SUI was trading around $2.72, down 22% over the past 24 hours. This sharp decline was accompanied by a surge in trader and investor activity.
According to CoinMarketCap, SUI’s 24-hour trading volume jumped 350% to $434 million.
The combination of a steep price drop and soaring volume suggests that market participants are actively pushing the price lower, likely driven by heightened bearish sentiment.
On-chain signal bearish outlook
In fact, Sui’s on-chain metrics further weaken its current outlook.
According to DeFiLlama, SUI’s TVL has dropped significantly by 18.90%, bringing the value down to $2.103 billion.
Source: DeFiLlama
A decline in TVL indicates that investors are withdrawing their funds from the network, reflecting reduced confidence and lower activity within the Sui ecosystem.
Meanwhile, Sui’s DEX volume has spiked to a record high of $1.543 billion, according to DeFiLlama.
This surge in trading activity likely reflects panic selling and investor exits, signaling heightened fear and uncertainty across the market.
SUI technical outlook: Levels to watch
According to AMBCrypto’s technical analysis, SUI is currently trading sideways, hovering within a tight range between $2.529 and $2.817, the lower and upper boundaries, respectively.
This sideways on the daily chart follows a breakdown below a key support level formed by an ascending trendline that has been intact since August 2024.
Source: TradingView
Following the recent breakdown, SUI’s bullish trend—active since 2024—has shifted to bearish. If the current downward momentum continues, the price could fall another 40% and reach $1.65 in the near term.
A reversal would require SUI to rebound and reclaim the $3 level, moving back above its ascending trendline.
At press time, the Average Directional Index (ADX) sat at 22, below the key threshold of 25, indicating weak trend strength.
Meanwhile, the Supertrend indicator remains bearish, positioned above the price and signaling continued downward pressure.
