SUI price faces uncertainty at $4.23 with possible drop to $3.37
SUI's (CRYPTO:SUI) price increased by over 5% in the last 24 hours, reaching $4.23 with a market capitalisation exceeding $12.38 billion.
This uptick raised hopes among investors for a further price surge.
However, market indicators are signaling a potential shift in sentiment.
Despite the recent price rise, SUI's trading volume has decreased, which could lead to a bearish correction.
"77% of traders on dYdX, with open SUI Futures traders betting on the price going up!" Ali Martinez, a well-known crypto analyst, highlighted a notable development.
This reflects optimism among futures traders, yet the broader market sentiment appears more cautious.
The Social Volume of SUI has also dropped in recent days, raising concerns about the sustainability of the current rally.
Analysis revealed that SUI's Long/Short Ratio is decreasing, with more short positions being opened.
A rise in short positions is often viewed as a sign of growing bearish sentiment and could lead to a price decline.
Technical indicators further support the bearish outlook.
The Money Flow Index (MFI) has shown a downward trend, and the Chaikin Money Flow is also signaling rising selling pressure.
These trends are typically associated with price corrections.
In the event of a downturn, SUI's price could fall to $3.37.
However, if the token manages to maintain its momentum, there is still a chance it could push towards $4.7 by the end of the year.
The coming days will likely reveal whether the token's recent surge is sustainable or whether it will face a price correction.
At the time of reporting, the Sui (SUI) price was $4.13.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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