Is the rebound of $SUI risky? Sell signals flashing as prices soar
The SUI token has recently surged significantly, but we need to be cautious; this rebound may hide risks. Although prices are skyrocketing, last week's trading volume decreased, which is not a good sign. Some market indicators and data are warning us that selling pressure is increasing.
Take last week as an example, the SUI token did indeed rise by over 19%, earning many investors a profit. However, while the upward momentum is still present, it is clearly not as strong as before. Just as the token price was climbing, its open interest also soared, which initially looked like a bullish market trend.
But we need to pay attention; the situation may change quickly. According to some data, such as from Santiment, although prices are rising, trading volume has dropped, indicating a potential trend reversal. Moreover, the weighted sentiment for SUI has also decreased significantly, with more people turning bearish.
Looking at the selling pressure, on November 17th, the sales volume exceeded 70, indicating a significant increase in pressure. A value close to 100 suggests high selling pressure, which could likely drive prices down.
Additionally, other technical indicators are also showing high selling pressure. For instance, the Chaikin money flow has dropped, indicating bearish sentiment or capital is flowing out. The relative strength index of SUI has also reached 84, indicating overbought conditions, which may cause investors to panic and sell their shares, potentially driving the token price down.
To be honest, this is the market capitalization of SUI calculated in BTC. The token price has also hit the upper limit of the Bollinger Bands, which might lead to a price adjustment.
However, if it does drop, SUI may find support at the 20-day simple moving average, and a rebound could be possible. So, we need to keep an eye on it and not let this rebound cloud our judgment.
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