Sui [SUI] has been on a bullish streak recently, hitting a record high of $2.35 on October 13th. The past month has seen SUI’s price surge by over 100%, demonstrating significant market strength.
On a weekly basis, the asset continues to perform well, showing a 4.7% increase over the last seven days. However, in the past 24 hours, SUI experienced a slight decline, dropping by 1.6% and currently trading at $2.20.
Although the recent price adjustment has raised some concerns, well-known crypto analyst Ali has issued a word of caution regarding SUI.
TD Sequential Indicators Signal Correction for SUI
In a recent update on X, Ali pointed out a potential significant correction for SUI based on a particular technical indicator.
Ali cautioned,
“I am not suggesting immediate short positions on SUI. Just advising caution. The TD Sequential indicator has been quite accurate in forecasting SUI’s trends on the weekly chart and is now indicating a sell signal.”
The TD Sequential indicator is commonly used by traders to identify possible trend reversals, indicating when a market trend might be approaching its end due to buying or selling pressure exhaustion.
In the case of SUI, Ali’s observation of the TD Sequential signaling a sell suggests a potential pullback for the asset in the near future. Traders and investors often use this signal as an early warning to reevaluate their positions, especially in overbought market conditions.
Assessing Fundamentals
Despite the technical concerns highlighted by Ali, SUI’s fundamental metrics present an intriguing outlook. According to Santiment data, SUI’s development activity has surged significantly, rising from 26 in early October to a peak of 45 in late September.
However, this metric has gradually declined since the beginning of October, dropping from 41 on October 6th to 36.69 at present.
Development activity serves as a gauge of a project’s ongoing innovation and enhancement, and any decrease in this metric could suggest a slowdown in the asset’s future growth.
Furthermore, data from Coinglass indicates that SUI’s open interest, representing the total number of outstanding derivative contracts, has decreased by 6.68%, with a current valuation of $614.43 million.
Similarly, SUI’s open interest volume has seen a significant drop, declining by 37.63% to $2.39 billion. These diminishing metrics hint at a waning market interest in the token, further supporting the likelihood of an impending price correction.