SUI has seen strong gains, rising 60% in the past few weeks.
The weighted sentiment curve fell to the zero line, indicating that investors are willing to sell after a short-term rally.
The strong rally of more than 60% now seems to be cooling down as Swiss franc (SUI) investors are willing to lock in profits. The Swiss franc price has been bullish for two consecutive weeks, driven by improved investor sentiment. The rally was further boosted by the Federal Reserve's rate cuts.
The Sui cryptocurrency has been one of the biggest gainers in the past week. The cryptocurrency has returned more than 60% to investors in the past two weeks, breaking out of the correction phase.
At the time of writing, SUI price is trading near $1.548. It is down 2.16% intraday. However, after the sharp short-term gains, investors are in a dilemma. They are in the middle, considering whether to lock in unrealized profits or hold on for more gains.
Let's determine whether SUI investors need to lock in their profits or hold on for more.
The weighted sentiment curve shows that investors are willing to sell
Previously, Sui entered a correction phase in April 2024. By the end of August, the coin had fallen nearly 62% from its high. However, the cryptocurrency reversed its trend, broke out of the correction phase, and rose in the fourth quarter.
According to data from on-chain analytics provider Santiment, Sui’s price has been moving higher over the past two weeks. However, the positive sentiment curve has declined, indicating a weakening of buying momentum. The weighted sentiment curve has fallen towards the zero line.
The weighted sentiment curve reveals the current preferences of traders and investors, whether they are bullish or bearish. According to the data, the weighted sentiment curve has dropped to the zero line. This indicates that the sentiment of investors has shifted from bullish to neutral.
Trading volume analysis shows that Bitcoin has gained 78.3% on the day, indicating an increase in demand. In addition, the intraday trading volume is $910.84 million. Bitcoin's real-time market capitalization is $4.08 billion, ranking 22nd in the cryptocurrency field.
SUI Price Prediction: Profit-taking or an early rebound?
Looking at the price action, SUI price has been rising in a bullish trend over the past two weeks. Moreover, the coin is approaching the $1.7 resistance level.
Sui Crypto has surged as much as 60% in recent trading. This suggests that the cryptocurrency still has room to pull back before it can continue to rise.
Furthermore, investors who entered the market after the breakout also made considerable profits. Therefore, there is a high probability that these investors will book profits and the price of SUI may fall back.
Moreover, the trend outlook has turned bullish after the recent breakout. This means that buyers may try to enter the market on pullbacks.
If Sui price drops below the $1.42 level, it might trigger profit taking. It might drop further towards the recent supply level of $1.03. Conversely, if the price breaks above the $1.7 level, it might continue to rise.
At the time of writing, the RSI line is at 79.7 points and the 14-day SMA line is at 70.93 points. Both the RSI and the 14-day SMA line are in the overbought territory, suggesting that a correction is due.
