SUI price caught attention as one of the best performers amid yesterday’s price surge. However, despite the rise, SUI’s situation may not be as positive as it seems. Charts indicate that the bear market in SUI may still persist despite the rise, and SUI could fall again as a result.
SUI Chart and Developments
The rise in SUI price since yesterday ended the altcoin‘s nearly four-month-long downtrend. Nevertheless, the downtrend line seen on the chart, along with the Relative Strength Index (RSI), currently appears to form a hidden continuation divergence.
The formation generally indicates a bearish trend and suggests the overall trend may continue downward. As the hidden continuation divergence shapes up, a dominant bearish idea could emerge, potentially pushing SUI back below the downtrend line it had surpassed.
To explain this situation more clearly, the price could return to the downtrend due to downward pressure and move in that direction.
Besides the bearish outlook, the existing negative funding rate on the SUI side continues to support the pessimistic appearance. The presence of a negative funding rate generally indicates that more investors are taking short positions in futures, which could trigger downward price pressure and strengthen the bearish trend.
The increasing negative funding rate may indicate a rising bearish trend regarding SUI’s future performance among investors. If more investors join this expectation, it could support the existing negative outlook and potentially pave the way for continued price declines.
Will SUI Price Rise?
SUI price increased by 27% in the last 24 hours and is trading at $0.85 at the time of writing. This situation also brought the market cap to $2.195 billion.
SUI price may start to pull back over time and return to test the $0.779 support in the future. All the developments mentioned above and chart-based views reflect that SUI currently lacks the strength to combat the existing bearish trend in the market.
Despite the recent rise, in a potential pullback, SUI price could drop to $0.707. If this level is not held and the $0.707 support is lost, the price could fall to $0.639 as reflected in the charts. The realization of the bearish expectation could completely erase the 38% rise seen in the last two days.
On the other hand, if investor sentiment changes and the trend turns positive, SUI price could exceed $0.894 if it stays above $0.779.
