Sui (SUI) Rallies 240% in 3 Months, But Stalling Momentum Raises Concerns

Over the past 30 days Sui [SUI] has been on a roll, tripling its market capitalization and showing outstanding growth.

Over the past 30 days, Sui (SUI) has been on a roll, tripling its market capitalization and showing outstanding growth. Over 100% increase in value drove the token’s market capitalization above $5 billion. But as is always the case with cryptocurrencies, what rises must fall at least momentarily.

The coin’s surge is showing signs of stalling after weeks of increasing momentum. Traders are now keeping a close watch on what could happen next for this once-hot asset. According to crypto price prediction site CoinCheckup, SUI is trading 220% below its expected price for next month, suggesting a possible undervaluation.

Price Slips And Declining Market Activity

SUI was trading at $1.84 at press time after losing 5% of its value within only 24 hours. According to CoinMarketCap, trading volumes have also dropped by 4%. This decline in activity suggests, at least for the time being, a decreasing interest in the token.

The technical signs don’t seem to be getting much better either. Tracking money flow into and out of an asset, the Chaikin Money Flow (CMF) has also been on a downward slope in the last seven days. This is an indication that money is flowing out of SUI, usually leading to problems for price stability. Moreover, the CMF has entered negative territory, suggesting that buying interest is currently being overtaken by selling pressure.

SUI: Slowing Momentum But Potential Bounce

The token started to sell off as its Relative Strength Index (RSI) dropped below a key signal line, indicating declining momentum. Still, there is a positive here. Should the RSI show a positive turn once more, it may indicate a buying opportunity for those who believe SUI has long-term promise.

If selling continues, analysts say SUI could test support at $1.70; this might not be a bad outcome. Strong support levels tend to attract buyers who see value at lower levels, acting as a basis for the price to increase once again. For SUI to break out from its current downturn, it will have to barrel its way past the resistance at $2, a key psychological and technical barrier.

Cooling Interest

Meanwhile, SUI, which has recently been seeing explosive growth, also seems to be cooling off. From an all-time high of $560 million, open interest declined 10% over the past 24 hours, reaching $450 million. This implies that traders are closing positions as excitement declines, thus helping to explain the general sell pressure on the coin.

Some traders would see the drop in open interest as a sign of opportunity even with this cooling off. Prices falling always tend to bring buyers back into the market, especially if they feel SUI is trading at a discount.

SUI still has promise in the long term. Over the following three months, analysts are projecting a possible 240% price increase; over the next year, a 160% increase. For SUI, especially with a long-term perspective, the future appears bright even if the road ahead could be rocky.

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