The Sui token price continues to drop despite its recent listing on the Robinhood platform, one of the largest in the U.S. In the last three days, Sui has fallen nearly 4% and reached its lowest level since early August.
Reasons for Sui's Price Drop
The Sui price decreased after its listing on Robinhood, which made the token available to millions of American investors. Typically, such listings lead to price increases; however, in this case, the opposite occurred. Three main reasons for this drop include:
1. A general decline in the cryptocurrency market. For instance, Bitcoin dropped to $113,000, and the total market capitalization of all tokens fell to $3.83 trillion, down from $4.1 trillion last week.
2. Falling demand for Sui. CoinMarketCap data shows that the 24-hour trading volume decreased by 10%, amounting to $1.33 billion. Futures open interest fell to $1.84 billion from $1.9 billion at the beginning of the week.
3. Investors continue to withdraw their tokens from staking pools. According to StakingRewards, the amount of staked Sui has decreased by 27 million tokens, worth $95 million over the last month.
Technical Analysis of Sui's Price
The eight-hour chart shows that the price of Sui has maintained a downward trend. It has dropped from $4.20 on August 13 to its current $3.46. The token has fallen below the 50-period moving average at $3.20.
Additionally, a bearish head-and-shoulders pattern has formed on the chart. The Supertrend indicator has turned red, signaling that bearish momentum is ongoing. Both the RSI and MACD indicators show downward trends.
Given the current situation, the Sui price may continue to fall, with sellers targeting the key resistance level at $3.2845, which represents the lowest level from August 2.
State of the Sui Ecosystem
The Sui ecosystem also shows declining performance. The total value locked in its decentralized finance dropped by 4.15% over the last month to $2.79 billion. Furthermore, the market capitalization of Sui’s stablecoins decreased by 12.8% over the past week to $767 million.
The Sui price faces downward pressure and continues to decline amid a general cryptocurrency panic and the deteriorating state of its ecosystem. Investors should monitor market developments closely.
