Sui [SUI] has been one of the best performing coins in the cryptocurrency market in recent months. In the past 30 days, SUI’s price has surged by more than 98%, and its market capitalization has doubled to more than $5 billion.
SUI’s gains have made it stand out amid the volatile trends of other altcoins. However, after more than a month of steady gains, the rally is now showing signs of fatigue and could see a reversal to find support before resuming the uptrend.
Derivatives data
Derivatives market data shows that SUI is cooling down after overheating. As of press time, open interest has dropped 11% over the past 24 hours to $457 million, Coinglass reported.
Earlier this week, SUI’s open interest hit an all-time high of $563 million, but has since fallen by more than $100 million, suggesting that traders are unwinding positions as interest wanes.
Additionally, SUI had the fourth-highest liquidation in the past 24 hours at $6 million. Most of the liquidated traders were long positions, which created a bearish sentiment.
Long liquidations also had an impact on the long/short ratio, which has dropped to 0.92. Although the ratio is close to the neutral zone, it shows that short traders slightly outnumber long traders.
SUI holders are holding back
SUI’s overall trading volume has dropped drastically, down 30% in the past 48 hours. The volume dropped from $1.1 billion to $830 million, a drop that suggests that SUI holders are becoming less engaged. This significant drop suggests that interest in altcoins is waning, further fueling the negative sentiment surrounding the asset.
Declining trading volumes indicate a drop in market participation, which often precedes price corrections. With fewer market participants, liquidity becomes an issue, making it harder for SUI to sustain its recent gains. Investors are growing more cautious, and this lack of confidence could push prices lower in the coming days.
From a macro perspective, technical indicators such as the Chaikin Money Flow (CMF) signal bearish momentum for SUI. The CMF has been showing consistent outflows since the beginning of the month, with outflows intensifying in recent days. Currently, the CMF indicator is below the zero line, confirming that investors are pulling money out of the asset.
Capital outflows suggest that investors are moving funds to avoid potential losses from falling prices. Weaker macro momentum is consistent with falling trading volumes, further solidifying the likelihood of a fall in the SUI. If there is no shift in broader market sentiment, the SUI could continue to fall.
SUI Price Analysis
Currently, SUI is trading at $1.82, down 4.4% in 24 hours. Trading volume has also dropped by 6%, according to CoinMarketCap, indicating that interest in the token is declining.
Moreover, the volume histogram bars have been red for the past three consecutive days, indicating strong seller pressure.
Buying activity around SUI is also decreasing. Chaikin Money Flow (CMF) has been trending down this week, which indicates that funds are flowing out of the token.
The CMF also turned negative on the daily chart as selling pressure outweighed buying pressure. This could be due to traders booking profits after the uptrend showed signs of weakening.
The selling activity started after the Relative Strength Index (RSI) broke below its signal line and formed a sell signal. Buyers are likely to return to the market if the indicator re-enters the bullish zone.
If buying activity remains scarce and sellers continue to dominate, the price could drop to the $1.70 support level. Buyers may use this dip to look for new entry points.
In simple terms
Credit Suisse has seen an increase in outflows this week after its uptrend encountered resistance. A lack of buyer support could cause SUI to drop to test support before rising again. Technical indicators such as in the short term support the bearish outlook, and for a sustained uptrend to remain, SUI is expected to need to break above the $2 resistance level.
