In the current cryptocurrency market, if there is one coin that can trigger intense battles between bulls and bears, it is definitely SUI.
In just one week, SUI has surged by 63%, quickly entering the ranks of high market capitalization assets, putting low-position holders on a 'roller coaster'.
Fundamentals are strongly supported, driven by non-speculative factors.
Although some question whether such a rise is just another fleeting speculative frenzy, on-chain data indicates that SUI's fundamentals are steadily strengthening.
SUI's on-chain account numbers, net inflows of stablecoins, and TVL have all shown explosive growth, indicating genuine user participation and capital support.
After successfully breaking through the psychological resistance level of $3.50, market funds surged in.
Investors are adjusting their positions, trying to take the initiative in this wave of market, especially against the backdrop of overall cautious market sentiment and concerns about rising retracement risks.
The upward trend is slowing down, and the market is entering a critical testing period.
But like all common phenomena after a strong rise, a cooling period seems to be approaching.
As of the time of writing, the SUI price has fallen back to $3.53, down 8.74% from yesterday's high of $3.87.
A rapid decline often leads short-term traders to exit quickly, reflecting the sensitivity of market sentiment.
From a technical perspective, the relative strength index (RSI) on the 4-hour chart previously rose above 80, indicating that the market was overbought, and the RSI has now begun to decline, showing that upward momentum is weakening.
However, fund inflows remain active. SUI's 24-hour trading volume has risen to $1.85 billion, and DEX trading volume has increased from $338 million to $437.6 million, indicating that the market is still highly active and investor enthusiasm remains.
On-chain data sends a signal, and the decline in OI raises caution.
Despite the increase in trading volume, another warning signal has appeared: SUI's open interest (OI) has decreased by 9.67%.
This usually means that market leveraged funds are retreating, speculative sentiment is cooling off, or some funds are starting to close positions.
Additionally, the selling liquidity in both the spot and derivatives markets has increased, reflecting that some investors choose to 'take profits'.
Belief and choice: Should one continue to hold or take profits in time?
Currently, SUI still maintains some upward momentum, but the risks facing the market are rapidly accumulating.
For investors, the next few days will be a dual test of psychology and strategy.
In the face of current volatility, you may have to choose between being a 'strong holder' (diamond hands) and a 'panic seller'.
Will SUI continue its strong momentum or enter an adjustment phase? The fundamentals are still supportive, but market signals are also suggesting caution.