Sui (SUI) has captured significant attention in the crypto market after a 10% surge over the past 24 hours. With major assets like Bitcoin (BTC) and Ethereum (ETH) exhibiting bullish sentiment, SUI has followed suit, drawing interest from both traders and long-term holders. However, as the asset experiences heightened inflows and leveraged positions, questions arise about the sustainability of its upward momentum.
$40 Million SUI Inflows – A Potential Selloff Signal?
Data from CoinGlass reveals that exchanges recorded nearly $40 million worth of SUI inflows during the height of the rally. Historically, substantial asset inflows during an upside move often indicate that long-term holders may be preparing to offload their positions, potentially leading to a price correction. Despite the optimistic sentiment, the significant influx of SUI could signal looming selling pressure.
Traders Betting Big on SUI – Can the Rally Sustain?
Traders have positioned themselves heavily on the bullish side, with $80 million in long positions and $30 million in short positions targeting key levels between $3.7111 and $4.15. According to technical analysis by AMBCrypto, SUI’s price action shows a breakout from its consolidation phase, successfully retesting the $3.80 resistance level. If SUI maintains this level, it could potentially rally another 40% to $5.65.
However, the asset’s Relative Strength Index (RSI) has reached the overbought territory, hitting the 75 mark. This suggests that a short-term correction is possible until the RSI drops below 70. As traders remain over-leveraged, a sudden price dip could trigger a cascade of liquidations, potentially impacting SUI’s bullish structure.
Bottom Line
SUI’s recent rally has drawn substantial interest from traders and long-term holders, but the influx of assets to exchanges raises concerns about a possible selloff. While technical indicators point toward further upside potential, over-leveraged positions and an overbought RSI could temper the bullish sentiment. Investors should monitor the $3.80 support level closely, as a breakdown could invalidate the current bullish setup.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: SUI Price Analysis: Rising Volume Signals Bullish Breakout to $4.65 and Beyond
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
