An analyst points out that Sui (SUI) is now in the ‘sell zone,’ thus opening a window of opportunity for investors to book profits.
As reported by the analyst on Twitter, Sui has reached a point where traders should begin selling some of their positions. This is mainly if the market exhibits divergence. The analyst pointed out that although he is not advising selling all the tokens, it would be wise to “bank some gains” now.
The analyst’s observations come from an intense price appreciation in Sui. It has garnered much interest from retail and institutional investors. He further stated,
”Breaking news and current market hype makes this an attractive coin to FOMO into”
The analyst tries to convince the traders to be more systematic through this particular sell zone. In this current situation, it is crucial to look at the technical aspect of the market. It is important to focus on the price action rather than the increasing market trends.
The analyst’s suggestion is based on price trends, crowd behavior, and technical reversal techniques, essential in identifying when to sell during a bullish trend.
Sui Up Over 8% in the Last 24 Hours
Over the past day, Sui has seen an upward movement of more than 8%. When writing this article, Sui has a price of around $1.15, with the cost of a single share reaching $1.17 during this period.
It has also been noted that the price has risen significantly. The trading volume has risen to more than $593 million within one day.
Sui has further been listed in the market with a total market capitalization value of over $3 billion. This ranks it among the 30 largest cryptocurrencies.
There has been a rise in both price and volume. Sui has shown some good signs of recovery after a minor pullback in the first week of the month.
At the time of writing this, the circulating supply of Sui was at 2.67 billion tokens. The total circulating supply capped at 10 billion.
The coin’s fully diluted market cap is estimated to be more than $11 billion. It indicates the possibility of an increase in the market.
But as the token keeps rising, traders are beginning to ask if this is just another bubble about to burst. The analyst’s suggestion to take an exit now depicts the uncertainties and the possibility of volatility in the price shortly.
Technical Analysis
We analyzed Sui’s technical levels and found that the token price is contained within a well-defined upward channel. The chart depicts that the cost of the token has been increasing gradually in the last few days.
It has been trading in this range. This recent rise has taken Sui to the upper side of the channel. This may mean that Sui has reached a resistance level. As the token approaches these ceilings, the analyst has warned, the token could head to new highs or fall back to the lower levels.
4-hour SUI/USD Chart | Source: TradingView
The Average Directional Index (ADX) for the 4-hour time frame is 40.56. This value shows a distinct pattern since the ADX measures the strength of a market’s trend without regard for direction.
However, this figure shows that the upward trend is strong, indicating that the trend may be overbought. Anything above 40 is pretty conclusive to suggest that a strong trend is in play. Although chances are that the trend might be close to ending.
To further support the trade, traders should monitor the ADX and other momentum indicators, including the RSI, for any form of divergence. Divergence is a situation where the price of an asset keeps rising while momentum indicators such as the ADX or the RSI decline.
This situation usually happens just before the price reversal, and the analyst has mentioned this as one of the most critical aspects of determining if one should sell. Moreover, Sui’s price is near the crucial resistance level.
The price has been rejected multiple times at $1.17, which is the recent high to the downside. If the token manages to overcome this resistance level, it might mean more upside from the current levels.
However, if the pullback fails, it may lead to a lower-level pullback. This will thus support the analyst’s view that some profits should be taken at the current level.
