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Over the past 30 days, Sui (SUI) has achieved significant success, tripling its market capitalization and showing outstanding growth. The over 100% increase in value has pushed the token’s market capitalization to over $5 billion. But as is always the case with cryptocurrencies, the highs have to come down at least momentarily.
Source: Coingecko
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The currency’s rise shows signs of pausing after weeks of increasing momentum. Traders are now watching closely what could happen next for this once-hot asset. According to cryptocurrency price forecasting site CoinCheckup, the SUI is Sell 220% below Its expected price for next month, indicating a possible devaluation of the currency.
Price slippages and decline in market activity
SUI was trading at $1.84 At press time, it had lost 5% of its value in just 24 hours. Based on CoinMarketCap, trading volumes also decreased by 4%. This decline in activity, at least for now, indicates a decline in interest in the token.
The technical marks hardly look much better. Tracking the flow of money into and out of the asset, Chaikin Money Flow (CMF) has also been on a downward slope in the past seven days. This is an indication that funds are fleeing SUI, which usually leads to price stability issues. Furthermore, the CMF has entered negative territory, indicating that buying interest is currently subject to selling pressure.
SUI: Slowing momentum but possible bounce
The token started selling off as the Relative Strength Index (RSI) fell below the main signal line, indicating declining momentum. However, there is a positive side here. If the RSI shows a positive turn again, this could signal a buying opportunity for those who believe SUI has long-term promise.
If the selling continues, analysts say SUI could test support at $1.70. This may not be a negative result. Strong support levels attract buyers who see value at lower levels, thus acting as a basis for the price to rise again. but It will have to work its way past the $2 resistance level, a key psychological and technical barrier, if it wants to break out of its current decline.
Refrigeration department
Meanwhile, SUI, which has recently seen explosive growth, appears to be cooling down. From an all-time high of $560 million to $450 million, open interest fell by 10% in the past 24 hours. This means that traders are closing their positions as excitement declines, which helps explain the general selling pressure on the coin.
Some traders may see lower open interest as a sign of opportunity even with this cooling off. Lower prices almost always mean buyers will return to the market, especially if they feel the SUI is underpriced.
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SUI still has long-term promise. Over the next three months, analysts expect a Potential price rise of 240%; Over the next year, an increase of 160%. For SUI, especially from a long-term perspective, the future looks bright even if the road ahead is bumpy.
Featured image from ThoughtCo, chart from TradingView
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