SUI, a standout performer in the cryptocurrency market lately, has witnessed a remarkable surge in its market capitalization over the past month, reaching over $5 billion following a staggering 98% price increase.
While many altcoins have experienced volatile trends, SUI has consistently outperformed, setting it apart from the crowd.
After a prolonged period of upward momentum, signs of exhaustion are starting to emerge in SUI’s rally, hinting at a potential reversal before resuming its upward trajectory.
Examining SUI’s Price Trends
Currently, SUI is trading at $1.82, marking a 4.4% decline over the past 24 hours. CoinMarketCap data indicates a 6% decrease in trading volumes, reflecting waning interest in the token.
The volume histogram bars have displayed a consistent red pattern for the last three days, signaling elevated selling pressure on the token.
Moreover, buying interest surrounding SUI is diminishing, as evidenced by the downward trend in the Chaikin Money Flow (CMF) indicator, suggesting an outflow of funds from the token.
On the daily chart, the CMF has turned negative due to heightened selling pressure outweighing buying activity, potentially driven by profit-taking following weakened uptrend signals.
The bearish momentum gained traction when the Relative Strength Index (RSI) crossed below the signal line, triggering a sell signal. A reversal back into bullish territory could prompt buyers to re-enter the market.
If buying pressure remains subdued and sellers maintain control, SUI’s price might retreat to the $1.70 support level, offering a potential re-entry opportunity for buyers.
To sustain its upward momentum, SUI will need to breach the resistance barrier at $2.
Evaluating Derivatives Market Data
Derivatives data indicate a cooling-off in SUI’s market after a period of overheating. Open interest declined by 11% in the last 24 hours, standing at $457 million according to Coinglass.
Despite reaching an all-time high of over $563 million recently, SUI’s open interest has dropped significantly, revealing traders’ closure of positions amid declining interest in the token.
Furthermore, SUI witnessed the fourth-highest liquidations totaling $6 million in the past 24 hours, predominantly affecting long position holders and contributing to a bearish sentiment.
This surge in long liquidations has tilted the Long/Short Ratio to 0.92, indicating a slight predominance of short traders, albeit nearing neutrality.