After a recent surge fueled by high demand and speculative trading, SUI price risks falling by double digits. This comes after a 124% 30-day price increase, which made the altcoin the best-performing crypto in the top 100.

While the broader market may hope for a higher high, data shows that a run toward $2 might not come easy. This on-chain analysis explains why investors should be cautious in the coming days.

Euphoria Is Not Good News for Sui

As of this writing, the altcoin’s price is $1.85, representing a 3% decline in the last 24 hours. Interestingly, the token’s performance aligns with BeInCrypto’s prediction, which suggested that SUI might not face intense headwinds after the token unlocks on Tuesday.

While Sui’s price drop has been minimal, its social dominance has been skyrocketing. According to Santiment, the project’s social dominance was 0.99 yesterday, October 2. But at press time, that ratio has increased to 1.53%.

Social dominance represents the ratio of discussions around a project compared to other assets in the top 100. Therefore, this hike indicates a high level of conversations related to SUI. However, the same condition suggests crowd euphoria and elements of Fear Of Missing Out (FOMO), especially as the token’s price has outperformed others.

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

From a price perspective, the extreme reading and FOMO could signal a local top for SUI, possibly leading to a brief price decline. This is another indicator supporting the potential decline in Sui’s volume.

As an important metric, the volume shows the level of coins traded within a specific period. Whenever volume increases, it means there is a lot of buying and selling. However, a decrease indicates a drop in market activity and liquidity.

In Sui’s case, the volume has risen to $1.32 billion. But rising volume on declining price is rarely a bullish signal. Therefore, this increase indicates that SUI is experiencing higher selling pressure, which could accelerate the downturn.

SUI Price Prediction: $2 Target Delayed

From a technical point of view, the Relative Strength Index (RSI) shows that SUI is overbought, suggesting that the price could retrace. The RSI measures momentum and spots oversold and overbought points. When the reading is above 70.00, an asset is overbought. 

On the other hand, a reading below 30.00 means it is oversold. With SUI’s price at $1.85, the RSI is 78.69, reinforcing the condition mentioned above. The Chaikin Money Flow (CMF) is another technical indicator predicting a price decrease.

Typically, the CMF measures the level of accumulation and distribution. When it increases, accumulation is higher than distribution. But a decrease implies otherwise. On the SUI/USD daily chart, the CMF has turned down, indicating that selling pressure has started to hit the token.

Read more: Which Are the Best Altcoins To Invest in October 2024?

Should this continue, SUI’s price could decline to $1.68 in the short term. Higher distribution might, however, send the token down to $1.42. On the flip side, the altcoin might resist downward pressure if the market condition improves. If that happens, SUI’s price might climb to the $2 mark.

EigenLayer’s native token, EIGEN, experienced a sharp price drop of 20% shortly after being listed on Binance and other top exchanges. Despite initial excitement surrounding the listing, concerns over transparency quickly shifted market sentiment. 

These issues appear to have harmed the token’s potential growth, causing uncertainty among new and existing investors.

Eigen Labs Under Fire

EigenLayer made headlines ahead of the listing of its native token, EIGEN. However, following the listing, the token made headlines again, but for a different reason. The network’s developers, Eigen Labs, were criticized for their lack of transparency regarding the staking of the token.

Generally tokens issued to the investors of the project are locked up as to prevent a pump and dump. These tokens are then gradually unlocked over time known as the “vesting period” only after which are investors allowed to trade or sell them.

Read More: What Is EigenLayer?

Interestingly this is not the case with EIGEN as investors were already allowed to stake their “locked up” tokens. While this was not initially communicated by Eigen Labs, it was simply added to their update documents.

This led to a massive uproar in the community, in response to which Eigen Labs provided clarity on Wednesday.

“Investors are allowed to stake both EIGEN and non-EIGEN assets on EigenLayer. Contracts with investors required that investors be permitted to stake EIGEN and that any rewards be unlocked. The maximum all EIGEN stakers can get annually is 1% of total initial EIGEN supply.  This is claimable weekly and takes a whole year to get linearly released.  This 1% includes all EIGEN stakers, including investors,” Eigen Labs stated in a post.

The developers also noted that the investors were not eligible for stakedrops and prohibited the Eigen Labs and Eigen Foundation teams from participating but were allowed to stake from the first day.

As a result of this controversy, EigenLayer’s network growth has suffered significantly. This metric, which tracks the rate at which new addresses are formed on the network, is often used to measure a project’s traction.

Within 24 hours, network growth dropped by 91%, signaling that new investors are losing confidence. This decline in interest may be directly tied to the ongoing transparency controversy, which is creating hesitation among potential investors.

The drastic drop in new addresses is a worrying sign for EigenLayer’s future, as network growth is a key indicator of long-term success. If the project fails to address these transparency concerns, the token’s market position may weaken further.

EIGEN Price Prediction: Expect the Unexpected

EIGEN’s price plummeted from $4.15 to $3.34, marking a 19% decline within a single day after its listing. This sharp drop highlights the volatility and skepticism surrounding the token, especially following its debut on major exchanges.

While the bearish sentiment may persist, the likelihood of EIGEN reclaiming $3.75 as support remains low due to ongoing investor skepticism. This uncertainty could lead to further price drawdowns if confidence isn’t restored quickly.

Read More: How to Participate in an EigenLayer Airdrop: A Step-by-Step Guide

If EIGEN loses the $3.25 support level, the altcoin may face additional losses. However, breaching $3.47 and flipping $3.75 into support could invalidate the short-term bearish outlook and reignite investor interest. For now, market sentiment remains fragile, with investors closely monitoring transparency developments.

Convex Finance (CVX) has seen a continuous downtrend since the crash at the end of July, with its price steadily declining each day. This prolonged drawdown has resulted in CVX reaching a new all-time low. 

The persistent losses have left investors wary, leading to further pessimism about the token’s recovery prospects.

Convex Finance Investors Give Up

Investor sentiment around CVX has been overwhelmingly negative in recent months. As losses continued to mount over the last two months, confidence among holders began to erode. Many investors who initially believed in the token’s potential recovery are now skeptical about its ability to bounce back, especially in light of the consistent price declines.

This growing pessimism has worsened as CVX fails to establish a stable support level. The lack of bullish momentum and the token’s inability to reverse its downtrend has compounded concerns, leaving many holders uncertain about the future of their investments.

Read More: What Is Convex Finance (CVX)?

CVX’s overall macro momentum is also troubling. Historically, Convex Finance has maintained a correlation with Bitcoin, a trend that typically benefits altcoins. However, this correlation has proven to be a bearish signal for CVX.

Whenever the correlation between CVX and Bitcoin improves, the altcoin has experienced further price drops. The current situation is no different, with the increased correlation contributing to CVX’s decline to a new all-time low.

This bearish macro environment, coupled with the strong correlation to Bitcoin’s price movements, has placed additional downward pressure on CVX. As the cryptocurrency struggles to recover, it remains vulnerable to further losses unless significant bullish sentiment returns to the market.

CVX Price Prediction: What After a New Low

Over the last four days, CVX has experienced a 16% drop, creating intense bearish pressure. This resulted in the token hitting a new all-time low, with an intra-day decline of 6%, bringing CVX down to $1.72. At the time of writing, CVX is trading slightly higher at $1.86, just above the critical support level of $1.81.

CVX would need to reclaim the local support level of $1.97 to regain momentum. However, given the current bearish sentiment and ongoing selling pressure, this may prove not easy in the near term. Without a significant change in the market conditions, CVX could struggle to break above key resistance levels and face consolidation above $1.81.

Read More: What are Crypto Airdrops?

On a more optimistic note, if CVX manages to bounce off the $1.97 level, it could push back above $2.00. A successful breach of $2.12 would invalidate the bearish-neutral outlook and potentially trigger a recovery, although this remains a challenging scenario given the token’s recent performance.