SUI: $4.23 or $3.37? What will the next move in token prices be?

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Sui (SUI) has experienced a strong rebound in the past 24 hours, with prices rising over 5% and market capitalization exceeding $12.38 billion. However, despite the recent optimistic performance, several market indicators and data suggest that a price correction may occur in the coming days.

Current Performance of SUI

As of the time of writing, SUI is trading at $4.23. Noted analyst Ali Martinez pointed out that on the dYdX platform, as much as 77% of traders hold long positions, betting on further price increases. This indicates that bullish sentiment in the market remains strong.

However, despite the price increase, SUI's trading volume and social activity are on the decline. A decrease in trading volume typically indicates a drop in market participation, while a reduction in social volume may undermine the token's market popularity, posing potential risks to price trends.

Future Trends: Bull Market or Bear Market?

According to AMBCrypto's analysis and Coinglass data, the decline in the long/short ratio indicates an increase in short positions in the market. This suggests that bearish sentiment is gradually rising, potentially triggering a price adjustment.

Moreover, key technical indicators have also signaled potential bearish signs:

Money Flow Index (MFI): has significantly decreased, indicating reduced capital inflow and increased selling pressure.

Chaikin Money Flow (CMF): shows a negative trend, further reinforcing selling pressure.

These signs indicate that if selling pressure continues, SUI's price may correct to $3.37.

Potential for Upside Remains

Despite the risk of a correction, if the bulls can maintain market dominance, SUI's price may continue to rise, targeting $4.7.

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