SUI flashes sell signal at $2.35: Analyst issues THIS warning for traders

by
  • SUI hit a new all-time high of $2.35 but is now showing signs of a potential correction.
  • Analyst highlights a TD Sequential sell signal, advising caution for investors amid declining open interest.

As a seasoned crypto investor with battle scars from numerous market cycles, I find myself cautiously optimistic about SUI’s recent performance and the potential correction it might face. While I’ve learned not to underestimate the power of a bull run, the TD Sequential sell signal and declining open interest are red flags that can’t be ignored.

In recent weeks, the value of SUI [SUI] has experienced a strong upward trend, reaching a new peak of $2.35 on October 13th. Over the past month, the price of SUI has skyrocketed by over 100%, demonstrating robust market performance.

Over the course of each week, this asset is showing positive growth, having risen by approximately 4.7% over the past seven days. Conversely, in the most recent 24 hours, SUI has experienced a minor decline, falling by 1.6%, and is now being traded at around $2.20.

As an analyst, I’ve been closely watching the recent price correction of SUI, and I must admit, it has caught my attention. However, in light of current market trends, I find myself issuing a cautious outlook for this cryptocurrency.

TD Sequential signals correction for SUI

In a recent article on X, Ali pointed out that the Significant Unnamed Index (SUI) could potentially experience a larger adjustment due to a technical signal.

Ali warned,

As a crypto investor, I’m merely suggesting caution when considering SUI. The TD Sequential, a reliable tool for predicting trends, has shown accuracy on the weekly chart, and currently, it’s indicating a potential sell signal. Keep this in mind as you navigate your investments.

The TD Sequential is a widely-used trading tool that assists analysts in predicting possible changes in market trends by detecting signs of waning buying or selling momentum. This indicator alerts traders when the current trend may be approaching its conclusion.

If the TD Sequential signals a sell for SUI, it indicates that the asset might experience a possible reversal or correction in the near future. This signal is frequently utilized by traders and investors as an advance warning to review their holdings, especially when the market seems to be overextended or overbought.

What does fundamentals say?

Despite the technical concerns raised by Ali, SUI’s fundamental metrics paint an interesting picture. Data from Santiment reveals that SUI’s development activity has seen a significant surge, rising from 26 levels in early October to as high as 45 in late September. 

Starting from October, this measurement has been steadily dropping. It was at 41 on the 6th of October, but it’s currently down to 36.69.

Development activity is often used as a measure of a project’s ongoing innovation and improvement, and any decline in this metric may signal a slowing momentum in the asset’s future growth.

Read Sui’s [SUI] Price Prediction 2024–2025

Moreover, as per Coinglass’s data, the open interest for SUI, which signifies the total quantity of active derivative contracts, has decreased by 6.68%. The present worth of these contracts is now estimated to be approximately $614.43 million.

As a researcher studying the SUI token’s market dynamics, I’ve noticed a substantial drop in the open interest volume by approximately 37.63%, bringing it down to $2.39 billion. This trend indicates a potential lessening of market enthusiasm for the token, which could potentially lead to a price adjustment in the near future, aligning with the hypothesis of an impending correction.

Read More

2024-10-15 19:03