According to CryptoPotato, Sui (SUI) has experienced a notable 125% increase over the past week, largely driven by the launch of Grayscale’s Sui Trust. Despite these strong gains, the high Relative Strength Index (RSI) suggests that the asset might be overbought, indicating a potential correction in the near future.
Sui (SUI) has emerged as one of the leading cryptocurrencies, showing an impressive price increase. It has risen over 9% on a daily scale and 70% weekly, currently trading at around $1, according to CoinGecko’s data. The significant ascent began last week following Grayscale's introduction of a Sui Trust, which focuses solely on investing in the underlying asset. The company also launched a Bittensor Trust, aiming to provide investors with familiar products that enable access to cutting-edge tokens in the evolving crypto ecosystem.
The asset's rally has garnered attention from various industry participants. Raoul Pal, founder and CEO of Real Vision, described Sui as a groundbreaking, ultra-fast Layer 1 blockchain ecosystem that originated from Meta’s Diem project. Pal considers SUI as one of the potential fastest-growing assets in the market. Additionally, X user Andrew Kang highlighted several factors suggesting interesting developments for SUI, including Pal’s endorsement, aggressive price action without pullbacks, and strong holdership through significant unlocks.
However, there are rumors that certain X users were paid to endorse SUI. Altcoin Sherpa mentioned that if these rumors were true, they would support the asset, noting its promising outlook. Nonetheless, the analyst cautioned about potential short-term issues, emphasizing the need for the price to cross the 200-day Exponential Moving Average (EMA) to maintain the uptrend.
Despite the overall bullish sentiment among crypto enthusiasts, one crucial metric indicates that SUI might face a downturn soon. The Relative Strength Index (RSI), which measures the speed and change of price movements, currently stands at almost 80. An RSI above 70 signals that the asset is overbought, suggesting that the price might experience a correction.