SUI [SUI] experienced a significant surge last week, witnessing robust bullish momentum with substantial double-digit growth. However, this upward trend may face a possible slowdown as a critical indicator has started flashing a sell signal. Will this signal mark the end of the bullish rally for SUI, or is it just a temporary pullback?
Recent Sell Signal for SUI
Last week, SUI investors enjoyed handsome profits as the token’s value soared by more than 19%. Although the bullish trend showed some signs of deceleration, the overall picture remained positive with SUI maintaining its green daily chart.
Reports from CryptoCrypto indicated a significant surge in open interest alongside the price spike, providing a strong foundation for the ongoing bullish momentum. However, there are indications that this trend might shift soon. Data from Santiment pointed to a decrease in trading volume despite the price surge, hinting at a potential upcoming reversal. Additionally, SUI’s weighted sentiment dropped, suggesting increasing bearish sentiment.
Furthermore, a notable observation from popular crypto analyst Ali highlighted a crucial development – the appearance of a sell signal on SUI’s TD sequential indicator. Historically, such signals have preceded price corrections. Notably, this indicator’s previous buy signal coincided with a remarkable 112% rally in SUI. Consequently, investors are advised to exercise caution as a correction could be on the horizon.
Increasing Selling Pressure?
On November 17th, selling pressure intensified, with a sell volume exceeding 70, signifying elevated selling pressure given that a value near 100 suggests high sell-offs.
Rising selling pressure typically paves the way for price corrections.
Several technical indicators also underscored the surge in selling pressure. For instance, the Chaikin Money Flow (CMF) showed a downturn, indicating a bearish trend or capital outflow from the asset. Moreover, SUI’s Relative Strength Index (RSI) peaked at 84, entering the overbought territory, potentially spurring market panic and prompting investors to offload their holdings, thereby pushing the token’s price downwards.
Notably, SUI’s price touched the upper Bollinger Bands limit, often resulting in price corrections.
In case of a price decline, SUI might seek support near its 20-day Simple Moving Average (SMA), offering a potential bounce-back opportunity.