The post SUI’s 30% Drop Just the Beginning? Crypto Expert Warns Of Devastating Crash Ahead! appeared first on Coinpedia Fintech News
SUI, the native token of the Layer-1 blockchain, has taken a major hit, dropping more than 30% in a month. Such a massive drop has raised concerns among traders, with crypto analyst Jason Pizzino warning that the token might be following a historical pattern that led to a deep crash in the past. Could SUI be on the verge of another major downturn?
SUI on the Brink of a Major Crash
According to Jason Pizzino’s analysis, the SUI token is displaying an “overbalance in time and price,” meaning its recent decline has lasted longer and fallen further than previous corrections in this market cycle.
However, this similar pattern was last seen before a sharp drop in April 2024, when SUI fell 58% from its high. Meanwhile, if it follows the same pattern, it could see another round of panic selling.
Pizzino further points out that SUI recently dropped to $2.38 before rising again. He believes that this recovery might not last long, and the price could fall again. And if SUI fails to stay above $2, Pizzino notes it could drop to $1.60 or even between $1.10 and $1.20, returning to its previous low points.
Rising Short Sellers Dominance
Adding to the concern, traders in the derivatives market seem to be betting against SUI. The token’s funding rate, which measures the cost of keeping a position open, is currently negative at -0.01%. It suggests that short sellers who profit when prices fall are dominating the market.
Therefore many traders expect SUI’s price to continue falling in the short term, which could add more downward pressure. As of now, it is trading around $3.58, reflecting a rise of 5.6% in a day.
SUI Price Analysis
Technical indicators also point to potential further losses. On the daily chart, SUI has fallen below the 0.50 Fibonacci retracement level, signaling weak support. Meanwhile, the Moving Average Convergence Divergence (MACD) has turned negative, reflecting the bearish sentiment.
If this trend continues, SUI could drop another 25%, sliding to the 0.236 Fibonacci level at $2.49.
However, if buyers step in and defend the 0.382 Fibonacci retracement level, the token might avoid further decline and even recover toward $4.56.