- SUI bulls maintain a strong position despite an extremely overbought price.
- Evaluate the potential for profit taking and selling pressure as the price exhibits several signs.
Sui (SUI) continues to demonstrate robust demand as most other major cryptocurrencies experience selling pressure and pullbacks. The performance reflects its growing popularity, but can this cryptocurrency maintain its current trajectory for a little longer?
SUI stood out among its peers this week thanks to its price action. From time to time, a major cryptocurrency tends to break away from the rest of the market by soaring while others experience capital outflows.
SUI happens to be this time around as the majority of major cryptos are starting October on a bearish leg.
Can SUI bulls continue to push higher without a retracement?
Although SUI bulls remain dominant, a solely upward trajectory is not sustainable. Those who bought low will be attracted to profits at some point. The cryptocurrency has so far issued a major sign that could signal the return of selling pressure in the coming days.
The first major observation is that SUI price has recently formed a bearish diversion pattern with the RSI. This after hitting $2.01 in the last 24 hours, marking a new 5-month high.
The bearish divergence could indicate that the bulls might be preparing to take a breather.
Source: TradingView
In addition to the bearish divergence, SUI was severely overbought at the time of observation. This means it could be susceptible to a wave of selling pressure in the coming days.
Although the cryptocurrency has maintained an overall upward trend, attempts at selling pressure have occurred along the way. Hyblock data reveals that there have been instances where selling pressure has increased over the past three days.
However, this was also accompanied by an increase in purchasing volume, negating any potential downside.
Source: HyblockCapital
It should be noted that selling pressure was slightly higher than buying volume at the time of observation. If this trend continues, cryptocurrency could experience new downsides.
Realistic or not, here is the market capitalization of SUI in terms of BTC
SUI has also seen a notable drop in funding rate over the past 3 days. This suggests that the derivatives segment may experience more uncertainty about what’s next. As well as a potentially higher level of short liquidations.
SUI’s ability to maintain its recent gains could underscore the fact that buyers are optimistic about its long-term potential. This would explain the reluctance to focus on short-term profits when cryptocurrency has the potential for higher gains.
