- SUI bulls maintain strong stance despite price being extremely overbought.
Assessing potential for profit-taking and sell pressure as price flashes multiple signs.
As a seasoned analyst with years of experience navigating the volatile world of cryptocurrencies, I must admit, SUI has been quite the enigma this week. It’s like watching a game of cat and mouse, where the bulls are relentlessly chasing higher prices while the bears are lurking in the shadows, waiting for a perfect opportunity to strike.
SUI, one of the leading cryptocurrencies, remains in strong demand despite other major cryptos facing selling pressures and downturns. Its resilience highlights its increasing popularity, but the question remains: Can it sustain this momentum for an extended period?
This past week, I noticed that SUI distinguished itself within the cryptocurrency realm, largely due to its impressive price movement. Occasionally, one significant digital currency separates itself from the rest of the market by skyrocketing in value while other currencies encounter outflows.
SUI happens to be it this time as majority of the top cryptos kick off October on a bearish leg.
Can SUI bulls keep pushing higher without a retracement?
Despite SUI bulls maintaining their strong position, a continuous upward trend isn’t sustainable in the long run. Investors who purchased during the bottom phase may find themselves tempted by potential profits, leading to a possible resurgence of selling activity. The cryptocurrency has shown some significant indicators that could hint at an impending increase in sell pressure over the next few days.
The first major observation is that SUI price recently formed a bearish diversion pattern with the RSI. This is after pushing as high as $2.01 in the last 24 hours, which represents a new 5-month high.
The bearish divergence could indicate that the bulls might be preparing to go for a break.
Over the bearish divergence, Swiss Franc (SUI) appeared extremely overvalued when checked. This suggests that it might react strongly to an impending surge of selling activity within the next few days.
Despite the general upward trajectory of the cryptocurrency, there have been periods of increased selling activity trying to influence its direction. Recent evidence from Hyblock suggests such sell pressure spiked over the past three days.
On the other hand, this was balanced out by an increase in purchasing activity, neutralizing any possible negative impact.
It’s important to mention that during the observation period, there was a bit more selling activity compared to buying. If this pattern persists, it might lead to further decreases in the value of the cryptocurrency.
Realistic or not, here’s SUI market cap in BTC’s terms
Over the past three days, SUI has seen a significant drop in its funding rate. This hints at increased unpredictability in the derivatives market about the next direction it might take, possibly leading to an uptick in short liquidations.
SUI’s ability to hold on to recent gains could underscore the fact that buyers are optimistic about its long-term potential. This would explain the unwillingness to focus on short-term profits when the cryptocurrency has potential for higher gains.
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2024-10-03 17:11