If the current technical setup is any indication to follow, Sui (SUI) could see its price drop below $2. On October 14, the token of the Layer-1 Move-programmed blockchain reached a new all-time high of $2.36.

Since then, the altcoin has faced challenges in moving higher, and this analysis explains why SUI might be poised for an extended correction.

Sui Slides Down the Ascending Channel

A look at the SUI/USD 4-hour chart shows that the token has been trading within a rising parallel channel since last month. The rising parallel channel pattern forms when traders connect higher highs and higher lows with two ascending parallel trendlines. The upper trendline connects the highs, while the lower trendline connects the low

This technical pattern is typically a bullish signal, suggesting that a cryptocurrency’s value could increase. However, this only occurs if the price remains above the support line of the lower trendline.

In SUI’s case, the lower trendline support is at $2.03, and as shown below,  SUI’s price is approaching that zone. If the price drops below this level, a significant downswing could follow.

Read more: A Guide to the 10 Best Sui (SUI) Wallets in 2024

Additionally, the same timeframe reveals that the Bull Bear Power (BBP) has turned negative. The BBP is a technical oscillator that measures the relative strength of buyers versus sellers in the market.

When the BBP is positive, bulls dominate, and the price tends to rise. Conversely, a negative BBP indicates that bears are in control. As seen below, the BBP has experienced a sharp decline, suggesting that SUI bears could push the price lower.

SUI Price Prediction: No Way Out of the Drop

Meanwhile, the daily chart also appears to be in line with the bearish bias. For instance, the Moving Average Convergence Divergence (MACD) has dropped to the negative region, just like the BBP.

It is historically a good strategy to buy when the MACD rises to the positive zone. This is because the reading during that period means that momentum is bullish, and prices can rise. However, a negative MACD, as it is with SUI, implies that momentum is bearish, indicating a sell signal.

Because of this condition, SUI’s price might likely experience a 10% decline that could take it to $1.83. In a highly bearish condition and volatile market, the altcoin might drop as low as $1.64.

Read more: Top 11 Platforms To Trade the Cheapest Cryptocurrencies

But if bulls come into the picture, this prediction might be invalidated. In that case, SUI might bounce to $2.36 again.

Cosmos’s native token ATOM has emerged as the top performer in the cryptocurrency market, with its price surging by nearly 10% in the past 24 hours. 

This uptick in ATOM’s price has been accompanied by a significant increase in open interest, which has reached its highest level since June. However, the question remains: how sustainable is this uptrend?

Cosmos Is the Talk Of the Town

ATOM trades at $4.86, noting a 9% rally over the past 24 hours. Its trading volume during that period has also skyrocketed, reaching a two-month high of $228 million.

When high volume accompanies an asset’s price rally, it indicates strong buying interest from many participants. This suggests that the price movement is supported by broad market activity, making it more sustainable. It’s not merely a short-term fluctuation driven by a small group of traders.

Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Additionally, ATOM’s rising Relative Strength Index (RSI) confirms the high demand for the altcoin. As of this writing, it is at 62.47 and in an upward trend. 

This indicator tracks an asset’s overbought and oversold market conditions. RSI readings between 50 and 70 generally suggest that the asset is gaining strength, with buying pressure outweighing selling pressure. In this case, the RSI of 62.47 shows that ATOM  has bullish momentum but has not reached extreme levels; therefore, there is still room for its price to grow.

Furthermore, ATOM’s open interest has climbed to a four-month high of $75.44 million, having surged by 10% over the past 24 hours. 

An asset’s open interest measures the amount of its outstanding derivatives contract that is yet to be closed. A rising price with increasing open interest confirms that the uptrend is strong and sustainable. Traders opening new positions add momentum to the price’s upward movement, indicating that it is driven by increased demand for the asset. 

ATOM Price Prediction: A Rally Toward $14.58 Or a Decline to $14.58?

If ATOM’s buying momentum persists, Fibonacci Retracement analysis points to a key price target of $7.81, a four-month high. A breakout above this level could push the token toward $14.58, a price not reached since March.

Read more: 10 Best Altcoin Exchanges In 2024

However, this bullish scenario could be disrupted if profit-taking increases, potentially dragging ATOM’s price down to $3.63.

The price of ApeCoin (APE) has surged nearly 100% in the last seven days following the announcement of Apechain and APE’s staking program. Despite this rally, whales are not accumulating more APE, indicating a lack of confidence in the sustainability of this price increase.

The number of wallets holding between 1 million and 10 million APE has actually decreased, suggesting that the recent momentum might be driven more by hype than strong fundamentals. As APE reaches overbought conditions, the potential for a correction remains a significant risk.

Whales Are Not Accumulating APE

Despite the hype around the launch of Apechain, the number of wallets accumulating large amounts of APE is not increasing. Specifically, the count of holders with between 1 million and 10 million APE has been steadily decreasing, dropping from 175 on September 20 to 166 by October 20.

This trend indicates that big investors, often referred to as “whales,” are not yet confident enough to increase their positions.

Read more: ApeCoin (APE): Everything You Need To Know

This metric is important because whale activity often reflects broader market sentiment. When large holders accumulate, it typically signals strong confidence in the asset’s future growth potential.

Even with the recent price surge in APE, whales appear cautious, suggesting that they may not believe this rally is sustainable. Until these major players start accumulating, a continued price uptrend remains uncertain.

ApeCoin RSI Shows an Overbought State

APE’s Relative Strength Index (RSI) is currently at 78, up significantly from 35 just a few days ago. This sharp increase in RSI reflects the recent surge in buying activity, pushing APE into overbought territory.

When RSI moves into such high levels, it suggests that the asset may be overvalued in the short term. That means it could be due for a pullback.

RSI, or Relative Strength Index, is a momentum indicator used to assess whether an asset is overbought or oversold. It ranges from 0 to 100, with readings above 70 typically indicating overbought conditions and readings below 30 indicating oversold conditions.

APE’s RSI is now well above 70, combined with a lack of whale accumulation and uncertain fundamentals, which points to a possible price correction ahead. The recent rally may not be sustainable if it’s driven solely by hype, making a pullback increasingly likely.

APE Price Prediction: Will It Go Back to April Levels?

APE price is approaching its next significant resistance levels at $1.82 and $2.07, which it has not reached since late March and early April.

If APE manages to break through these resistance points, it could result in a 38% price surge. However, breaking these levels would require strong buying momentum, potentially driven by sustained interest in Apechain.

Read more: ApeCoin (APE) Price Prediction 2024/2025/2030

On the flip side, if the current hype around Apechain fades and buying strength diminishes, APE might face a downturn. The price could test key support levels at $1.10 and $0.94.

If these supports fail, APE could drop as low as $0.54, representing a potential 60% correction from the current price. The market’s reaction to upcoming developments will be crucial in determining if APE can maintain its upward trajectory or face a significant pullback.