Sui Network’s attempted recovery rally seems to be crumbling after facing a double-barreled rejection from the descendant lower trendline. This has left many investors wondering if Sui Blockchain is on the brink of collapse. The rally, which saw a 40% surge in SUI price over the course of 7 days, was triggered by a bounce off lower trendline support on August 17. However, despite the growth and development of the new layer-1 within the ecosystem, the SUI token has struggled to perform in the current choppy market climate.
While the Sui blockchain is experiencing significant growth, with active accounts nearly doubling in the last week, SUI has still faced rejection and is currently trading high in the channel at $0.52. This represents a 24-hour change of -3%. The recent rejection has further weakened SUI’s technical structure on the short-time frame as it tumbled below the recently reclaimed 20DMA. Additionally, the descendant range of the SUI token appears to be narrowing in a bearish pendant pattern.
Amidst the concerning indicators, there are some signs of relief for SUI investors. The RSI is showing an oversold signal at 42, indicating the potential for a push up in the future. This is further supported by the bullish divergence displayed by the MACD at 0.0028, suggesting the possibility of a bounce. However, these positive signals may be overshadowed by the double rejection from the upper trendline and the loss of 20DMA support, which could result in dire consequences for SUI price action in the short-term.
The current technical analysis of SUI suggests limited upside targeting at the descendant upper trendline just above the 20DMA at $0.59, representing a potential increase of 11.7%. Conversely, there is a nearby lower support level at $0.50, which poses a potential downside risk of 5.35%. Considering these factors, SUI’s risk-reward ratio stands at 2.19, which surprisingly presents a good entry opportunity despite the weakening technical structure.
While SUI faces uncertain prospects, smart investors have begun to rotate their capital into the emerging Sonik coin, which has the potential to become the next big meme coin. Sonik Coin ($SONIK) has garnered significant attention and market excitement, raising over $759,000 in less than a week during its presale. There are several factors driving the hype around Sonik Coin, one of which is its impressive staking Annual Percentage Yield (APY) of 209%. This alluring staking opportunity not only provides passive income for investors but also demonstrates the team’s commitment to long-term stability and growth.
Sonik Coin goes beyond being just another meme coin; its innovative staking model and the infectious enthusiasm surrounding its branding has set it apart in the crowded meme coin market. The inclusion of staking emphasizes the team’s aim to encourage token holders to maintain their positions for extended periods, mitigating volatile price swings and establishing a solid foundation for steady growth. With a price per token of $0.000014 and its upcoming debut on the decentralized exchange Uniswap, Sonik Coin’s visibility in the market is set to multiply exponentially.
Sonik Coin aims to follow in the footsteps of PEPE Coin, which has delivered remarkable returns of over 10,000% to early backers. The transparent and community-centric vision of Sonik Coin’s founders, combined with the enticing staking rewards and the buzz it has already generated, positions it as a promising investment with the potential for an impressive trajectory. By taking cues from historical market patterns, it becomes clear that early investment may yield substantial results.
While Sui Network’s recovery rally may be faltering, the growth and development of the Sui blockchain should not be overlooked. The future of SUI price action remains uncertain, with downside risks and limited upside potential. However, the rise of Sonik Coin presents an alternative opportunity for investors looking to capitalize on the allure of meme coins and staking rewards. It is important to note that investing in cryptocurrency carries high risks, and this article should not be interpreted as investment advice. As with any investment, there is a possibility of losing all capital.
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