SUI's astonishing performance has shocked the market
The price of SUI skyrocketed 63% in just one week, breaking through the resistance level of $3.50 and leaping into the high market capitalization zone. Undoubtedly, this strong rise has attracted the attention of many investors and turned early low-price investors into eager sellers.
However, this is not a temporary 'hype' phenomenon; SUI's fundamentals remain solid, with explosive growth in account numbers, stablecoin inflows, and total locked value (TVL), showcasing strong development momentum behind it.
Pullback after a rise, the market begins to cool down
Despite SUI's strong performance in a short period, as of the time of writing, the price has fallen from a peak of $3.87 to $3.53, a decline of 8.74%.
This pullback could trigger panic selling among traders, especially when the relative strength index (RSI) exceeds 80, marking 'overbought' conditions. This usually signals that the market is about to cool down or undergo a reversal.
Rising trading volume, market participation remains high
Despite the price decline, SUI's trading volume has risen against the trend by 8.74%, reaching $1.85 billion. The trading volume on decentralized exchanges (DEX) also surged from $338 million to $438 million.
Despite the market price pulling back, investor enthusiasm remains undiminished, prompting us to closely monitor on-chain fundamental indicators, which may reveal the true direction of the market in the coming days.
A tug-of-war between bulls and bears
AMBCrypto's analysis indicates that as the price rises, the 4-hour chart of SUI shows the RSI starting to pull back, suggesting that the market's overheating sentiment may be cooling down. The 9.67% decrease in open interest (OI) indicates that leveraged trading is rapidly retreating, and seller liquidity is recovering.
At this moment, cracks in the market are gradually showing, and investors face the difficult choice of holding or cashing out. The next few days will be a critical moment to test investors' patience and determination.
Although the bulls still hold a certain advantage, risks are rising rapidly, and the future direction of the market is filled with uncertainty.
