Following a recent surge driven by high demand and speculative trading, SUI’s price is at risk of falling by double digits. This comes after a 124% price surge in 30 days, which has made the altcoin the best-performing crypto in the top 100.

While the broader market may be hoping for a new high, data shows that a run towards $2 may not be easy. This on-chain analysis explains why investors should be cautious in the coming days.

FOMO is not good news for Sui

At the time of writing, the altcoin’s price is $1.85, representing a 3% drop in the past 24 hours. Interestingly, the token’s performance is in line with BeInCrypto’s forecast, which suggested that SUI may not face intense headwinds following the token’s unlock on Tuesday.

While Sui’s price drop has been minimal, its social dominance has been skyrocketing. According to Santiment, the project’s social dominance was at 0.99 yesterday, October 2. But at the time of publication, that ratio has increased to 1.53%.

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Social dominance represents the proportion of discussions about a project compared to other assets in the top 100. Therefore, this increase indicates a high level of SUI-related conversations. However, the same condition suggests collective euphoria and elements of fear of missing out (FOMO), especially as the token’s price has outperformed others.

From a price perspective, the extreme reading and FOMO could signal a local top for SUI, possibly leading to a brief price drop. This is another indicator that supports the potential drop in Sui volume.

Picos de sentimento coletivo do SuiSocial Dominance of the Sui. Source: Santiment

As an important metric, volume shows the level of coins traded over a specific period. Whenever volume increases, it means there is a lot of buying and selling. However, a decrease indicates a drop in market activity and liquidity.

In the case of SUI, volume rose to $1.32 billion. But rising volume at a falling price is rarely a bullish sign. Therefore, this increase indicates that SUI is facing increased selling pressure, which could accelerate the decline.

Volume do Sui aumentaSui Transaction Volume. Source: Santiment

Price Prediction: $2 Target Delayed

From a technical perspective, the Relative Strength Index (RSI) shows that the SUI is overbought, suggesting that the price may pull back. The RSI measures momentum and identifies overbought and oversold points. When the reading is above 70.00, an asset is overbought.

On the other hand, a reading below 30.00 means it is oversold. With SUI priced at $1.85, the RSI is 78.69, reinforcing the condition mentioned above. The Chaikin Money Flow (CMF) is another technical indicator that predicts a price decline.

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Typically, CMF measures the level of accumulation and distribution. When it increases, accumulation is greater than distribution. But a decrease implies the opposite. On the SUI/USD daily chart, CMF has turned down, indicating that selling pressure has started to hit the token.

Análise de preço do Sui mostra declínioDaily Sui Price Analysis. Source: TradingView

If this continues, SUI’s price could drop to $1.68 in the short term. Further distribution could, however, lead the token to drop to $1.42. On the other hand, the altcoin could resist the bearish pressure if the market condition improves. If that happens, SUI’s price could rise to the $2 mark.

The article Could Market FOMO Hurt SUI’s Rally? – Analysis Responds appeared first on BeInCrypto Brazil.