Sui and Ondo Price Forecast: SUI and ONDO bears eye for double-digit crash

Sui (SUI) and Ondo (ONDO) prices hover around $3.90 and $1.33 on Tuesday after declining recently. Both altcoins could be poised for a double-digit crash ahead as Sui technical indicators show bearish momentum, while ONDO funding rates are negative.

Sui bears aim for 25% crash 

Sui’s price broke below an ascending trendline (drawn by connecting multiple daily close levels since November 26) on January 19. However, it recovered slightly to retest the broken trendline the next two days, but it was rejected, leading to a crash of 17% until Sunday. On Monday, SUI tested and found support around its 200-day Exponential Moving Average (EMA) at $3.78. At the time of writing on Tuesday, it trades at around $3.90.

If SUI breaks and closes below its 200-day EMA at $3.78 on a daily basis, it would extend the decline to test its next support level at $2.96, crashing nearly 25% from its current level.

The Relative Strength Index (RSI) on the daily chart reads 38 and points downwards, indicating strong bearish momentum not yet in oversold conditions, leaving more room to extend the decline. 

The Moving Average Convergence Divergence (MACD) indicator also shows a bearish crossover, suggesting a sell signal. Rising red histogram bars below the neutral zero line suggest that the Sui’s price could continue its downward momentum.

SUI/USDT daily chart

Ondo price set for a double-digit decline

Ondo’s price faced rejection from its 61.8% Fibonacci retracement level on Sunday (drawn from its November 3 low of $0.58 to its all-time high of $2.14 on December 16) at $1.54 and declined almost 7% until Monday. At the time of writing on Tuesday, it hovers around $1.33.

If the $1.54 level holds as resistance, ONDO will extend the decline by nearly 20% to retest its January 13 low of $1.09.

The Relative Strength Index (RSI) indicator on the daily chart reads 48, below its neutral level of 50 and points downwards, indicating a slowdown in bullish momentum. The Moving Average Convergence Divergence (MACD) indicator is also converging. If the MACD flips to a bearish crossover on a daily basis, it would give a sell signal and suggest a downtrend ahead.

ONDO/USDT daily chart

Further supporting the bearish sentiment, and according to Coinglass’s OI-Weighted Funding Rate data, the number of traders betting that the price of Ondo will slide further is higher than that anticipating a price increase. This index is based on the yields of futures contracts, weighted by their open interest rates. Generally, a positive rate (longs pay shorts) indicates bullish sentiment, while negative numbers (shorts pay longs) indicate bearishness.

In the case of ONDO, this metric stands at -0.0014%, reflecting a negative rate and indicating that shorts are paying longs. This scenario often signifies bearish sentiment in the market, suggesting potential downward pressure on Ondo’s price.

Ondo funding rate chart. Source: Coinglass