Is Sui Blockchain Going to Zero? SUI Price Falls as Wider Crypto Market Bounces and Sonik Coin Secures $750,000
Sui Network's (SUI) attempted recovery rally appears to be breaking down, following a double-barrelled rejection from the descendant lower trendline - leaving disparate bag-holders asking is Sui Blockchain going to zero?
The +40% recovery rally was triggered by a bounce off lower trendline support on August 17, and saw SUI price surge across 7-days to reclaim the 20DMA and hit a local high at $0.60.
However, while the SUI token has struggled to perform in a choppy market climate, the new layer-1 (which aims to deliver higher-speed smart contracts) has seen constant growth and development within the ecosystem.
Indeed, the Sui blockchain is undergoing immense growth - with active accounts almost doubling in the last week.
Amid the rejection, SUI is still trading high in the channel, at a current market price of $0.52 (representing a 24-hour change of -3%).
This comes following two failed tests of topside resistance from the upper trendline (which has haunted price action since June).
Critically, the recent rejection has seen a tumble below the only recently reclaimed 20DMA, this weakens SUI's technical structure on the short-time frame and suggests downside moves are likely.
Worse still, SUI's descendant range appears to be narrowing in a bearish pendant pattern.
Yet, there is still some relief to be found in SUI's indicators, with the RSI showing an oversold signal at 42 - indicating the capacity to push up once more.
This is matched by the MACD which displays bullish divergence at 0.0028, again reflecting a potential chance for a bounce.
Overall, the double rejection from the upper trendline, combined with the loss of 20DMA support could spell disaster for SUI price action on the short-time frame.
Upside targeting is limited here,
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