• Crypto & Funx
• 24 Nov, 2024

While October’s launch of MLS Quest and USD Coin integration on the Sui mainnet initially fueled positive momentum, broader market corrections have weakened bullish sentiment.

Despite recent declines, SUI’s funding rate turned positive as it briefly crossed $1.95.

However, ongoing bearish sentiment and high volatility suggest potential challenges for sustained upward momentum.

After hitting an all-time high of $2.35 last week, SUI price has retraced by more than 10% slipping under the crucial support of $2.0, as investor interest in the Layer-1 blockchain seems to be on a decline.

The SUI price has been moving in a highly volatile zone in the past few weeks leading to increased bearish sentiment for the altcoin. Last month in October, the launch of MLS Quest, a Major League Soccer-themed non-fungible token () platform developed in partnership with the gamified blockchain startup Sweet, boosted positive sentiment around SUI.

Another major trigger behind the SUI price rally was the launch of the USD coin on the Sui mainnet. However, amid the broader crypto market correction and retracement, the bullish sentiment around the altcoin faded away. As of press time, SUI is trading at $1.89 with a market cap of $5.37 billion.

With short-term bullish sentiment fading, SUI faces increasing pressure to hold support above the $2 level. Similar patterns in SUI’s price chart and Bitcoin’s suggest that SUI often tracks Bitcoin’s market sentiment.

Courtesy: TradingView

While the uptrend appears promising, with the 20-day EMA acting as support, concerns linger over its durability. Read on to see if bulls can take charge or if SUI’s price may face further declines.

SUI Price Sentiment on a Decline

As per the on-chain data provider Santiment, the weighted sentiment around Sui on social platforms has moved from 0.06 to -0.06 over the last two days. This negative sentiment usually triggers fear, uncertainty, and doubt (FUD) among investors while pushing the price downwards in a short time frame.

Market intelligence data reveals that total open interest in SUI’s perpetual contracts has dropped sharply, from $895 million on October 7, at the onset of the recent market-wide rally, to $440 million at the time of reporting.

Courtesy: Santiment

Despite mounting bearish sentiment, SUI’s funding rate turned positive, moving from -0.002% to 0.01% as its price briefly crossed the $1.95 mark earlier today.

Currently trading at $1.88, SUI has gained 0.3% over the past 24 hours and remains the 18th-largest cryptocurrency with a market cap of $5.3 billion. Its daily trading volume has also surged by 30%, reaching $630 million.

It will be interesting to see where the SUI price trajectory shift from here onwards as the overall altseason could still be delayed to January 2025.