SUI Price at Risk: Analyst Warns of Incoming Altcoin Aftershock

Cryptocurrency analyst Dan Gambardello has issued warnings about potential risks facing altcoins, including SUI price. This is despite maintaining long-term bullish sentiment on the sector.

In his latest analysis, Gambardello examines Federal Reserve policy, institutional accumulation patterns, and technical indicators that suggest both immediate risks and future opportunities for altcoins.

Analyst Adds SUI Price to Risk Model Amid Altcoin Woes

Gambardello has recently added SUI price to his cryptocurrency intelligence system’s risk models and responded to popular demand from his community members. The timing of SUI’s addition to the risk model framework comes as Gambardello expresses concerns about overall altcoin market conditions.

While he doesn’t provide specific technical analysis for SUI price in his latest commentary, the token’s inclusion in his monitoring system means it faces the same macro headwinds affecting other altcoins.

SUI, like other altcoins, remains subject to the market dynamics that Gambardello describes. This includes Federal Reserve policy impacts and institutional flow patterns.

The analyst’s risk model approach suggests he views SUI price as requiring the same careful monitoring as other major altcoins during this period of market uncertainty.

Fed Balance Sheet Contraction Creates Bearish Pressure on Altcoins

Gambardello’s analysis centers on the Federal Reserve’s balance sheet, which continues to contract from its 2022 peak. This creates challenging conditions for risk assets, including altcoins.

The analyst notes that markets are currently in a quantitative tightening phase that has persisted since early 2022. This has contributed to what he describes as “bear market-y” conditions across cryptocurrency markets.

The macro analyst points to historical precedent for his concerns and references the correlation between Fed policy and cryptocurrency performance.

He highlighted the 2012-2013 period when quantitative easing drove Bitcoin’s price action. Gambardelo also noted that Bitcoin was then a smaller asset more comparable to current altcoins in terms of market dynamics.

Gambardello also refers to the September-October 2019 period when Fed balance sheet expansion coincided with altcoin recuperation from bear market depths. The current environment describes the opposite trend, with continuing contraction offering headwinds to alternative coins.

Although recognizing potential short-term risks, the analyst believes that the current phase is setting up for eventual growth. He indicates that years of bear market conditions have presented opportunities to accumulate. However, he finds it necessary to stay patient since markets anticipate a Fed policy shift to quantitative easing.

The analyst warns that the altcoins can face further downward pressure as the Fed maintains contractionary policy, but sees this as part of a larger cycle.

Ethereum Technical Indicators Suggest Massive Upside Potential

Gambardello’s technical analysis of Ethereum indicates oversold levels on the monthly timeframes. This is likely to translate into significant price appreciation upon improvement in market conditions.

The analyst points out Ethereum’s Stochastic RSI with oversold levels on a monthly chart, which had been the case in September 2023 when a large-scale breakout had been evident.

The September 2023 comparison puts perspective on the upside. This is where Ethereum was around $1,600 and then rallied 140-150% higher.

Now worth around $2,600, the same appreciation rate would place Ethereum price at over $6,000. Gambardello, however, cites the present oversold condition to suggest the even higher potential for an upside than in 2023.

Ethereum’s chart for the month shows that the cryptocurrency is sandwiched between its 20-month and 50-month moving averages, a position that in the past has resulted in major moves. The Stochastic RSI indicator shows more oversold conditions than at the September 2023 breakout.

BlackRock’s continued build-up supports this technical view. The asset manager is increasing its holding of Ethereum from 1 million ETH in December 2024 to 1.4 million ETH currently. This 400,000 ETH institutional build-up is happening when technical charts show an oversold position.

Ethereum whales have also been on an accumulation spree recently. Over $11 million worth of ETH was purchased by whales in the past few days.