Robinhood's listing of SUI fails to halt its plummeting value
Sui's price has taken a significant hit, plummeting below key resistance levels and key technical indicators pointing towards further decline.
The SUI price, which peaked at $4.20 on August 13, has since fallen to the current $3.46, marking a strong downward trend. This drop can be attributed to a multitude of factors, including a broader crypto market downturn, sell-off pressure from token unlocks, decreasing demand, and weakening ecosystem metrics.
One of the key factors is the overall crypto market crash, where major assets like Bitcoin also dropped significantly, reducing market sentiment and liquidity across the board. This market-wide slump coincides with Sui's price fall, creating a challenging environment for the cryptocurrency.
Technical analysis also suggests that Sui has formed a bearish chart pattern known as a head-and-shoulders pattern on the 8-hour chart. This pattern, a known bearish signal, led to a nearly 4% drop over three days.
Another contributing factor is the large release of 76.27 million Sui tokens, valued at about $210 million, which flooded the market. This token unlock prompted early investors to sell, causing a sharp price drop of around 23% from recent highs.
The decline in on-chain activity and ecosystem health also plays a significant role. The total value locked (TVL) in Sui’s decentralized finance (DeFi) projects dropped more than 4%, and there was a significant fall in stablecoin market cap, reflecting waning user participation and reduced confidence.
Despite being listed on Robinhood, Sui's price has not seen a sustained increase. Although the listing initially caused a small price uptick (+1.7%), it was insufficient to sustain momentum. Data shows that demand metrics have been declining post-listing, with lower trading volumes and weakening market interest.
Investors tend to rotate capital into tokens with higher short-term momentum or smaller market caps. Large caps like Sui require massive inflows to rally, and liquidity may have shifted away from Sui during this period.
The Supertrend indicator for SUI has turned red, indicating a continuation of bearish momentum. Both the Relative Strength Index and the MACD indicator for SUI have pointed downward, further supporting the bearish outlook.
A break below $3 for SUI will raise the odds of the coin dropping below its current price. However, it's essential to keep in mind that the crypto market is dynamic, and prices can change rapidly.
As of now, the total value locked in Sui's decentralized finance stands at $2.79 billion, a decrease of 4.15% in the last 30 days. Meanwhile, Sui's stablecoin market cap has decreased by 12.8% in the last seven days, currently standing at $767 million.
In summary, Sui’s price decline despite Robinhood listing is due to macro crypto market stress, post-unlock oversupply, technical bearish trends, ecosystem weakness, and reduced demand that collectively outweighed the positive effects of increased accessibility via Robinhood.
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