Sui has been the talk of the crypto town, rallying nearly 10% in just a week. But despite the recent gains, traders are starting to feel bearish about the altcoin.
According to on-chain analytics platform Coinglass, a whopping 71% of traders on Binance are currently holding short positions, betting that SUI’s price might drop soon. Meanwhile, 29% are keeping their faith and holding long positions.
This wave of short positions is sending signals of bearish sentiment in the market, potentially leading to increased selling pressure and a dip in SUI's price.
As it stands, SUI is trading at $2.02, boasting a market cap north of $5 billion (thanks, Coinmarketcap!). This surge in attention has doubled its trading volume, with a third of the market cap being actively traded.
Experts are cautious, noting that SUI is hovering near a price point where it previously suffered a 50% drop. With the flood of short positions on Binance, another significant decline could be on the horizon.
If SUI can't close the daily candle above $2.2, a 20% drop is likely, potentially pushing the price down to around $1.62. However, if it manages to hold above $2.2, there’s a chance SUI could soar to a new all-time high.
Adding to the concerns, the Relative Strength Index (RSI) for SUI is currently in the overbought zone, hinting at a possible price correction soon.
Right now, SUI is trading close to $2.04, marking a 2.69% uptick in the past 24 hours. During this period, trading volume shot up by 112.62%, indicating heightened market activity during this recovery phase.
One potential driver behind this price surge could be SUI’s recent addition to Bybit’s Launchpool. Bybit’s Launchpool allows users to stake tokens and earn more SUI or other rewards. SUI’s inclusion seems to be shaking things up and influencing its recent price movements.
Stay tuned, folks—SUI’s journey is anything but predictable! 🚀📉
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