Sui’s native cryptocurrency has outperformed all top 10 digital assets over the past week after its valuation surged by double digits.
While optimism is running high on crypto X that the uptrend is far from over, some technical indicators suggest that a downside move could also be approaching.
What Sparked the Rally?
Several hours ago, SUI briefly pushed above $1.40, marking its highest level since January. The bears, though, quickly stepped in and trimmed part of the gains, bringing the price back to around $1.27 – still an impressive 35% jump on the week. SUI’s market capitalization surged past the $5 billion milestone, making it the 23rd-biggest cryptocurrency.
The main catalyst behind the upswing seems to be Sui Group Holdings’ decision to stake 108.7 million SUI tokens (worth over $140 million), thus removing almost 3% of the coin’s circulating supply from the market.
The analytics platform Santiment Intelligence added two more factors that could have also positively impacted the valuation. The first is the upcoming launch of CME Group SUI futures (scheduled for May 29) and the partnership with Paga, which focuses on cross-border African payments.
Paga is a leading settlement platform that allows millions of people to send, receive, and manage money across Africa. The collaboration with Sui aims to bring the Sui Dollar (USDsui) to the continent, giving users access to faster, cheaper, and more reliable digital payments.
Numerous analysts believe the asset’s valuation may reach new peaks soon. X user OxNeena noted the “massive breakout attempt” on the daily chart, envisioning an explosion above $2.50 should the price make a “clean flip” of the $1.30 zone.
For their part, CoinForge said they dismiss 98% of altcoins, but SUI isn’t among those. They argued that the asset’s price trajectory repeats the pattern seen last cycle, suggesting it could be gearing up for a major bull run in the coming months.
The Pre-Correction Signs
Contrary to the prevailing optimism among market observers, SUI’s Relative Strength Index (RSI) suggests a pullback may be the next move in the short term. The technical analysis tool measures the speed and magnitude of recent price changes and is used by traders to spot potential price reversal points.
It ranges from 0 to 100, where anything above 70 signals that the valuation has risen too much in a short period, which could be a precursor to a cool-off. Conversely, ratios below 30 hint that the asset is oversold and could be on the verge of a pump. Currently, SUI’s RSI stands at nearly 75.
In the meantime, exchange inflows have outpaced outflows over the past few days, indicating that investors have abandoned self-custody in favor of centralized platforms. This, in turn, increases the immediate selling pressure.
The post Sui (SUI) Soars 35% Weekly: What Fueled the Pump and What’s Next? appeared first on CryptoPotato.