SUI standing strong amidst cryptocurrency market downturn: Can bullish trend persist?
Amidst a general trend of selling pressure and pullbacks in the cryptocurrency market, Sui [SUI] has shown remarkable resilience and sustained demand. This exceptional performance is a clear indicator of its increasing popularity, but the question remains: can this digital asset uphold its current momentum in the foreseeable future?
This week, SUI has emerged as a standout performer, showcasing a price movement that sets it apart from the rest of the market. It is not uncommon for a major cryptocurrency to break away from the pack, surging while others face downward trends.
At present, SUI occupies this distinctive position, shining bright while many other top cryptocurrencies begin October on a bearish note.
Is SUI’s bullish run sustainable without a pullback?
While the bulls for SUI are currently in control, maintaining a continuously upward trajectory is not a feasible long-term strategy. Eventually, those who entered the market at lower price levels will be tempted to take profits, potentially leading to a shift in market dynamics. Recent indicators suggest that sell pressure could make a comeback in the days ahead.
One significant observation is the formation of a bearish divergence pattern in SUI’s price, coinciding with a new 5-month high of $2.01 in the last 24 hours.
This bearish divergence signal hints at a possible correction in the near future.
In addition to the divergence pattern, SUI has shown signs of being heavily overbought, indicating vulnerability to increased selling activity soon.
Although the overall trend for SUI remains bullish, recent data from Hyblock suggests occasional spikes in sell pressure over the past three days.
However, these selling pressures were balanced out by a surge in buying volume, mitigating the potential downside impact.
It is important to note that sell pressure currently outweighs buying volume, suggesting a likelihood of further declines if this trend continues.
In the derivatives market, SUI has experienced a notable decrease in funding rates over the last three days, signaling a rise in uncertainty and potential short liquidations.
The resilience of SUI to sustain its recent gains indicates strong buyer confidence in its long-term prospects, emphasizing a focus on future growth rather than short-term gains.