Sui (SUI) exchange outflows over the last three days have increased, suggesting that the altcoin’s recent decline may not last. As of this writing, SUI’s price is $3.23.
This price is 17% down from its all-time high, which it hit on November 17. Will SUI recover and rally above $4?
Sui Shows Bullish Signs on Several Fronts
According to Coinglass, Sui Spot Inflow/Outflow since November 30 is cumulatively about $25 million. This inflow/outflow measures the value of tokens sent into exchanges or removed.
When the value is positive, more cryptos have flowed into exchanges. From a price perspective, this indicates potential selling pressure. On the other hand, if the value is negative, it means there are more outflows, suggesting that holders are not willing to sell.
For SUI, it is the latter. Therefore, if this trend continues, SUI’s price might erase its recent 5% drop and probably rally back to its all-time high.
Following the development, data from Santiment shows that SUI’s funding rate is positive. The funding rate shows if long-positioned traders are paying shorts to keep their position open or otherwise.
When the metric is positive, it means longs are paying, and the average trader sentiment is bullish. On the other hand, if the metric is negative, it means shorts are paying longs, and the broader expectation is bearish.
Therefore, the notable rise in the metric suggests that traders expect a rebound. If the Sui exchange outflow continues to rise, the price might bounce, and these traders could become profitable by holding these positions.
SUI Price Prediction: Rebound Coming
On the 4-hour chart, SUI bulls appear to be defending the price at $3.21. This support appears to be strong and could prevent the cryptocurrency from a massive decline below $3.
A further look at the chart also shows that trading is also leaning toward rising buying pressure. If sustained, then Sui could validate the bullish thesis. However, traders might need to watch for the $3.15 level, which is the 78.6% Fibonacci retracement level.
As long as SUI’s price remains above this level, the altcoin’s price might climb to $3.94. However, if the token drops below that point, rebounding might be challenging.
If that happens and SUI exchange outflows drop, the forecast might be invalidated. Should that be the case, the cryptocurrency’s price might decline to $2.97.