SUI hit a new all-time high of $2.35 but is now showing signs of a potential correction. Analyst highlights a TD Sequential sell signal, advising caution for investors amid declining open interest.

Sui [SUI] has enjoyed an early bullish run in the past few weeks, with the asset hitting a new all-time high of $2.35 on 13th October. Over the past month, SUI’s price has surged by more than 100%, showing remarkable strength in the market.  Even on a weekly basis, the asset is performing positively, with a 4.7% increase over the past seven days. However, in the last 24 hours, SUI has experienced a slight downturn, dipping by 1.6% and currently trading at $2.20. While the recent price correction has drawn attention, prominent crypto analyst Ali has issued a cautious outlook for SUI. 

TD Sequential signals correction for SUI In a recent post on X, Ali highlighted that SUI might be in for a more significant correction based on a technical indicator. Ali warned, “I’m not saying go and short SUI. I’m just saying, be careful. The TD Sequential has been spot on in predicting SUI’s trend on the weekly chart, and it’s now flashing a sell signal,” 

Source: Ali on X

The TD Sequential is a popular technical analysis tool used by traders to identify potential trend reversals. This indicator helps spot the exhaustion of buying or selling pressure and signals when a market trend might be nearing its end. In the case of SUI, Ali’s observation of the TD Sequential flashing a sell signal suggests that the asset may face a potential pullback soon. Traders and investors often use this signal as an early indicator to reassess their positions, particularly when the market shows signs of overbought conditions. What does fundamentals say? Despite the technical concerns raised by Ali, SUI’s fundamental metrics paint an interesting picture. Data from Santiment reveals that SUI’s development activity has seen a significant surge, rising from 26 levels in early October to as high as 45 in late September. 

Source: Santiment

However, since the start of October, this metric has seen a gradual decline, falling from 41 on 6th October to 36.69 as of press time. Development activity is often used as a measure of a project’s ongoing innovation and improvement, and any decline in this metric may signal a slowing momentum in the asset’s future growth.

Read Sui’s [SUI] Price Prediction 2024–2025

Additionally, data from Coinglass showed that SUI’s open interest—a measure of the total number of outstanding derivative contracts—has dropped by 6.68%, with its current valuation sitting at $614.43 million. 

Source: Coinglass

Similarly, SUI’s open interest volume has also seen a significant decrease, plunging by 37.63% to $2.39 billion. These declining metrics suggest that market interest in the token may be cooling off, further supporting the possibility of a price correction in the near term.

Take a Survey: Chance to Win $500 USDT  

Next: Why is Bitcoin going up today? This historical trend could be key

Share

Share

Tweet