Sui’s recent price movements have created a volatile environment, shaking investor confidence and raising concerns about the asset’s future. SUI soared to a record-breaking $2.36 on October 14, benefiting from an overall bullish trend across the cryptocurrency market. The launch of the MLS Quest—a soccer-themed NFT platform developed in partnership with Gamified blockchain startup Sweet—helped fuel optimism. Additionally, the introduction of USD Coin (USDC) on Sui’s mainnet bolstered its appeal, drawing more attention from investors.

Market Correction Dampens the Hype

However, the surge in SUI’s price quickly reversed, with the broader crypto market undergoing a corrective phase. By the end of October, SUI’s bullish momentum had largely faded, leaving the asset to grapple with growing investor skepticism.

According to data from market analysis platform Santiment, the sentiment around SUI shifted sharply from positive to negative within just a few days. Weighted social sentiment for SUI dropped from 0.06 to -0.06, indicating a spike in fear, uncertainty, and doubt (often abbreviated as FUD) surrounding the asset. This negativity has translated into caution among traders, which tends to pressure prices down further.

Open Interest Drops to Two-Month Low

The overall interest in SUI’s perpetual contracts has taken a significant hit, with open interest plummeting from $895 million on October 7 to around $330 million, its lowest point in two months. This drop in open interest highlights how cautious investors have become, as fewer people are now participating in SUI’s trading.

Despite the pessimistic outlook, there has been a slight recovery in SUI’s funding rate, which moved from -0.002% to 0.01% as its price briefly climbed above $1.95 earlier today. This shift suggests that some investors may be looking to reenter the market, hoping for a rebound.

Trading Volume Increases, but Concerns Persist

SUI’s daily trading volume has seen a 30% increase, reaching $630 million. Although this indicates some trading activity, it has not been enough to lift investor confidence. With SUI’s price currently sitting around $1.88, investors remain cautious about the asset’s direction, particularly given the broader market’s tendency toward volatility.

If SUI faces further price drops, there is a risk of panic selling among investors. Prolonged negative sentiment could lead to liquidations, triggering a potential selloff that would push the price down further. As SUI continues to face uncertainty, investor interest remains in a delicate balance.

In summary, SUI’s journey from all-time highs to current volatility highlights the fragile nature of investor sentiment in the crypto market.