SUI has exceeded Litecoin in market capitalization over the last month, thanks to its expanding user base driving this upward trend.
Nevertheless, a recent 3% weekly decline has placed SUI among the top losers in the market.
This divergence has led analysts at CryptoCrypto to investigate whether the recent pullback was a deliberate move to shake out less resilient investors, setting the stage for a potential surge that could push SUI towards the $2.40 mark.
If successful, this surge could jeopardize NEAR’s position as the 17th largest cryptocurrency by market cap; if not, Litecoin might be on track to reclaim its position.
SUI Reaches a Key Transactional Milestone
Interestingly, SUI has displayed significant upward potential in the past couple of months. Despite bearish phases, bullish forces have managed to uphold the support level at $0.53.
With a current price of $2.06, SUI has demonstrated substantial gains within a short period. This rapid increase was marked by a notable peak, causing the RSI to reach overextended levels.
Despite concerns, the token has sustained its upward momentum, encountering minor setbacks that were skillfully navigated by bullish support.
This progress is reinforced by the platform’s architecture, which aims to address the limitations of traditional blockchains by facilitating quicker transactions without congesting the network.
With an achievement of 270K TPS, SUI has garnered positive feedback from crypto enthusiasts, boasting an impressive $6 billion in transaction volume.
This success pushed SUI to an all-time high of $2.40 just last week.
However, the rise to this level triggered many investors to start selling off, resulting in a significant decrease in daily transactions, halving to $20 million.
This pattern indicates that the surge has prompted numerous stakeholders to cash in on profits, leading weak holders to exit their positions.
To see a revival, it’s vital for new buyers to target the local low around $2 as a potential entry point, anticipating an upswing that could yield substantial profits.
If this pattern continues, SUI could witness a strong recovery, potentially setting a new all-time high. In such a case, its market capitalization might trigger a reshuffling in the top 20 rankings.
Intense Competition on the Horizon
Despite SUI’s significant surge in the past 60 days, traders have been consistently selling off their stakes, leading to a daily volume drop to $30 million.
However, the price has stabilized, indicating a potential accumulation phase by stakeholders, which is crucial for a turnaround.
The recent pullback has brought SUI close to the $2.05 level, making it crucial for holders to see this as an opportune entry point. The recent downward wick suggests that many are adopting this strategy.
If this trend continues, SUI might be gearing up for a major correction around the $2 mark, as a recent bearish MACD crossover suggests that prices could trend lower unless traders step up their buying activity.
If renewed interest emerges around the $2 mark, a strong recovery could ensue. However, to surpass NEAR, the rebound must propel SUI back towards the $2.40 threshold.