SUI Price Forecast: Technical indicators show bearish divergence
|- Sui price faced rejection from its all-time high of $2.18 on Monday, hinting at a decline ahead.
- Technical analysis shows that SUI has formed a bearish divergence on a momentum indicator.
- A daily candlestick close above $2.18 would invalidate the bearish thesis.
Sui (SUI) price extends its decline on Wednesday after being rejected from its all-time high of $2.18 on Monday. Technical analysis further supports a short-term decline, as the formation of a bearish divergence on a momentum indicator suggests weakening upward momentum.
Sui price shows signs of weakness
Sui price was rejected from its all-time high of $2.18 on Monday after three straight weeks of rallying over 70%, and it declined slightly the next day. At the time of writing on Wednesday, it continues to trade down around $1.90. If this resistance level at $2.18 holds, Sui's price could extend the decline by 27% to tag $1.38, its daily support level.
Moreover, the Relative Strength Index (RSI) indicator supports this bearish thesis in the daily chart. The higher high in SUI’s price formed on Monday does not reflect the RSI lower high for the same period. This development is termed a bearish divergence and often leads to a reversal of the trend or a short-term crash.
SUI/USDT daily chart
However, the bearish thesis would be invalidated if the SUI price breaks and closes above $2.18. This scenario could lead to a rally in Sui's price to form a new all-time high of $2.87, the 141.40% Fibonacci extension level drawn from an early August low of $0.48 to an early October high of $2.17.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.