SUI, once considered one of the promising new Layer-1 projects, is flashing significant warning signals on both technical and macroeconomic fronts.
Based on detailed analysis, a correction toward the $1.51 level is becoming increasingly likely within the next one month.
Here’s why smart investors are stepping back — and preparing to accumulate at much better valuations.
5 Powerful Technical Reasons SUI Could Hit $1.51
1. Weekly Trend Breakdown
SUI’s weekly chart structure has decisively shifted into a bearish pattern, marked by consistent lower highs and lower lows. Key moving averages that previously offered support are now acting as resistance, indicating a clear trend reversal.
2. Breakdown of Key Fibonacci Levels
SUI has already lost the critical 0.5 Fibonacci retracement at $2.88 and the 0.618 level at $2.28. Historically, such failures often lead assets to revisit the 0.786 Fibonacci zone — in this case, around $1.44–$1.51.
3. Failed Trendline Retest
A major ascending trendline has been broken and unsuccessfully retested, signaling a loss of bullish momentum and confirming a transition into a deeper correction phase.
4. Bearish Volume and RSI Divergence
Volume analysis shows clear distribution patterns rather than accumulation, while the Relative Strength Index (RSI) continues to exhibit bearish divergence — weakening the case for immediate recovery.
5. Psychological Breakdown Around $2
The failure to sustain the critical $2 psychological level removes a key floor of support. Without strong buyer defense, price action tends to accelerate toward the next major support zone — near $1.51.
5 Critical Macro Reasons Adding Pressure on SUI
6. Altcoin Liquidity Shrinking
Global liquidity across altcoins is contracting, making it increasingly difficult for mid-cap projects like SUI to maintain current valuations without continuous new inflows.
7. Bitcoin Dominance Rising
Bitcoin dominance is steadily increasing, signaling a broad rotation out of speculative altcoins into safer large-cap assets. Historically, this dynamic has pressured high-beta coins like SUI the most.
8. Regulatory Uncertainty Weighing on New Projects
Continued regulatory scrutiny, particularly targeting newer and less established blockchain projects, has led to increased caution among investors — impacting demand for assets like SUI.
9. Meme Coins and New Token Launches Diluting Capital
An explosion of meme coins and frequent new token launches is fragmenting investor interest. The altcoin pie is getting smaller, and SUI’s share is diminishing as traders chase high-risk, high-reward opportunities elsewhere.
10. Fragile Global Risk Sentiment
With broader financial markets facing recession fears and geopolitical instability, risk appetite remains weak. Investors are increasingly conservative, preferring to avoid mid-cap speculative assets during uncertain times.
Final Word:
Technical breakdowns, weakening fundamentals, shrinking liquidity, and tougher market conditions all point to the same conclusion:
SUI is highly likely to correct to $1.51 in the near term.
For disciplined investors, this represents an opportunity — but only at the right level.
Patience and strategic positioning will be key to turning this correction into a winning entry.
In investing, waiting for the right pitch is just as important as swinging the bat.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please conduct your own research before making investment decisions.
