SUI, a popular cryptocurrency, has recently caught the attention of crypto enthusiasts due to a significant 13% price surge in the past 24 hours. Despite this positive movement, traders are now shifting their focus towards betting on short positions.
According to data from Coinglass, an on-chain analytics firm, 71% of traders on Binance currently hold short positions on SUI, indicating a bearish market sentiment. In contrast, only 29% of traders have long positions on the cryptocurrency. This data suggests that there may be selling pressure in the market, leading to a potential price decline in the coming days.
In terms of technical analysis, experts point out that SUI is currently trading around the $2 level. Historically, whenever SUI has reached this price point, it has experienced a significant price decline of over 50%. The active short positions on Binance further support the possibility of a similar price drop this time around.
If SUI fails to close the daily candle above $2.2, there is a strong likelihood that it could drop by 20% to reach the $1.62 level in the near future. On the other hand, if it manages to hold above $2.2, there is a chance for the cryptocurrency to reach new highs.
Currently, SUI’s Relative Strength Index (RSI) is in the overbought zone, indicating a potential price correction or decline in the coming days.
As of now, SUI is trading near $2.04 and has seen a 13% price increase in the last 24 hours. The trading volume has also surged by 145%, suggesting increased participation from traders and investors amid the ongoing price recovery.
One possible reason for this upward movement is SUI’s recent addition to Bybit’s Launchpool. Bybit’s Launchpool allows users to stake tokens and earn additional SUI or other rewards. This inclusion is significant as Launchpool typically features tokens from the Mantle ecosystem, making SUI’s presence a deviation from the norm.
In conclusion, while SUI has experienced a notable price surge, traders are now cautious about a potential price decline. The technical analysis and market sentiment point towards a possible drop in price, but the cryptocurrency’s recent addition to Bybit’s Launchpool could also impact its future price movements. Investors and traders are advised to monitor the situation closely to make informed decisions.