SUI may be preparing for a breakout as weak stocks exit the market. If that happens, there is a possibility that the ranking within the top 20 will change.
Sui (SUI) has had a huge impact, surpassing Litecoin (LTC) in market capitalization over the past 30 business days. The growing user base is certainly accelerating this upward trend.
However, recent weekly decline of over 3% has propelled SUI to the top of the losers chart.
This divergence has AMBCrypto analysts investigating whether the recent decline was a deliberate attempt to shake off a weak hand, setting the stage for a stronger push that could close SUI near $2.40. Now it looks like this.
If that happens, the rebound could nearly eliminate its status as the 17th largest cryptocurrency by market capitalization. Otherwise, Litecoin seems poised to regain its position.
SUI reaches transaction milestone
Interestingly, SUI has shown strong upside potential over the past two months. Despite the bearish cycle, the bulls managed to block the retracement and held the last support level at $0.53.
SUI, which is trading at $2.06 at the time of writing, has seen an impressive rise in a short period of time. This sharp rise was characterized by a pronounced peak in RSI reaching hyperextension.
However, despite this concern, the token has maintained its upward trajectory, with only minor hiccups occurring and strategically smoothed out by bullish support.
This momentum is fueled by a network design that aims to address the shortcomings of traditional blockchains by enabling faster transactions without congesting the network.
Achieving 270,000 TPS, SUI has struck a chord with cryptocurrency users and boasts a staggering $6 billion in trading volume.
This success pushed SUI’s ATH to $2.40 just a week ago.
However, as this price range reached its potential high, many wallets began dumping their holdings and daily transactions decreased significantly, halving to $20 million.
Source: Artemis Terminal
This trend suggests that many stakeholders benefited from this surge, prompting weaker parties to exit.
However, for a pullback to materialize, it is important for new buyers to anticipate a rally that could yield significant returns and target the local low of $2 as a potential push.
If this trend holds, SUI could experience a strong rebound and lead to a new ATH. In such a scenario, its market capitalization could cause a fluctuation in its ranking within the top 20.
Fierce competition awaits
Remarkably, despite the sharp rally experienced by SUI over the past 60 days, spot traders continued to unload their holdings, with daily volume dropping to $30 million.
However, prices have remained stable, suggesting potential accumulation by stakeholders, which is essential for recovery.
Source: Coinglass
The recent weekly decline has brought SUI closer to the $2.05 level, making it imperative for holders to view this as an ideal entry point. Recent red wicks indicate that many may be adopting this strategy.
Read Sui (SUI) price prediction 2024-25
If this trend holds, SUI will remain near $2 as the recent MACD crossover has turned bearish, suggesting that prices could fall unless spot traders ramp up their buying activity. There is a possibility that we are preparing for a major adjustment in the future.
If this renewed interest materializes around $2, a strong rebound could follow. However, to break above NEAR, SUI will need to rebound back to around $2.40.
Next: Is a Litecoin Price Revival Underway? Social Engagement Could Be Key.
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