SUI stands out amid correction: Can it maintain its upward momentum?
SUI investors remain bullish, despite the price being overbought.
Assess the possibility of profit taking and selling pressure when the price shows many remarkable signs.
Sui [SUI] continues to show strong demand amid selling pressure and corrections from most other top cryptocurrencies. This reflects its growing popularity, but can SUI maintain this momentum for longer?
This week, SUI stood out from the crowd with its impressive price action. Every now and then, a major coin breaks away from the general market by surging while others suffer capital outflows.
This time, SUI is such a Coin, as most of the top digital Coins opened October with a bearish trend.
Can SUI bulls continue to push prices higher without a correction?
While bullish investors still have the upper hand, the sustained uptrend is unlikely to last forever. Bottom buyers will eventually be lured in by profits at some point. So far, the cryptocurrency has shown some important signs that could signal a return of selling pressure in the coming days.
See more: Altcoins to collect to double when the Crypto market is bustling
The first key observation is that SUI price recently formed a bearish divergence pattern with the RSI. This comes after pushing as high as $2.01 in the last 24 hours, marking a new 5-month high.
Bearish divergence may indicate that bullish investors are preparing for a period of rest.
Source: TradingView
On top of the bearish divergence, SUI is severely overbought at the time of observation. This means that it could be susceptible to a bout of selling pressure in the coming days.
Although the cryptocurrency has maintained an overall uptrend, there have been instances of selling pressure along the way. Hyblock data reveals that there have been instances of selling pressure spikes over the past three days.
However, it was also accompanied by a surge in buying volume, balancing out any bearish potential.
Source: HyblockCapital
It is worth noting that the selling pressure was slightly higher than the buying volume at the time of observation. If this trend continues, the cryptocurrency could face some further downside.
See also: Is Sei (SEI) Price Outpacing Sui (SUI) Bullish Momentum?
SUI also recorded a significant drop in interest over the past three days, suggesting that the derivatives market segment may be experiencing more uncertainty about the next move along with a higher likelihood of short liquidation.
SUIâs ability to hold its recent gains could indicate that buyers are bullish on its long-term potential. This could explain the reluctance to focus on short-term gains when the cryptocurrency has the potential to make even higher gains.
#tintucbitcoin #tintucbitcoin.com #Write2Win #BinanceTurns7 #TopCoinsJune2024
