• SUI reaches a new ATH of $2.18 but bullish momentum fades.
  • Transaction volume drops 30% in 48 hours, signaling waning interest.
  • Technical analysis suggests potential 23% decline to $1.45 support level.

SUI , having recently achieved a new all-time high (ATH) of $2.18, finds itself at a critical juncture as the bullish momentum that propelled it to this peak shows signs of waning.

This shift in market dynamics has raised concerns among investors about the potential for a significant price correction, with some analysts projecting a possible 23% decline.

The most immediate indicator of this changing sentiment is the sharp decline in SUI’s overall transaction volume. Within a mere 48-hour window, transaction volume has plummeted by 30%, falling from $1.1 billion to $830 million.

This substantial decrease in market activity suggests a rapid cooling of interest in the altcoin , potentially foreshadowing further price weakness.

SUI transaction volume plunges

This reduction in transaction volume carries broader implications for SUI’s market health. Decreased participation often precedes price corrections, as lower liquidity makes it challenging for an asset to maintain recent gains.

SUI Fails to Sustain Bullish Momentum: Transaction Volume Drops image 0 SUI Fails to Sustain Bullish Momentum: Transaction Volume Drops image 1 Source:  Santiment

The evident caution among investors could act as a self-fulfilling prophecy, exerting downward pressure on SUI’s price in the near term.

From a macro perspective, technical indicators paint a bearish picture for SUI. The Chaikin Money Flow (CMF), a key metric for gauging buying and selling pressure, has been consistently negative since the beginning of the month.

The CMF’s position below the zero line confirms ongoing capital outflows, suggesting investors are actively moving funds away from SUI to mitigate potential losses.

Looking ahead, SUI’s price action appears precarious. The loss of bullish momentum that drove it to its recent ATH puts the critical $1.70 support level at risk. A breach of this threshold would likely confirm the bearish outlook, potentially paving the way for a further decline to the next significant support at $1.45.