- SUI appears to be on the verge of a breakout as weaker investors exit the market.
- Should this occur, we might see a rearrangement in the rankings of the top 20 cryptocurrencies.
Sui [SUI] has significantly impacted the market over the last 30 trading days, overtaking Litecoin [LTC] in its market capitalization. This growth has been driven by an expanding user base.
Nonetheless, a recent pullback of more than 3% over the past week has positioned SUI on the top losers chart.
This trend has led analysts at AMBCrypto to investigate whether this recent drop was a tactical move to displace weak hands, aiming for a robust recovery that could see SUI approach $2.40.
If this is the case, NEAR could lose its position as the 17th largest cryptocurrency by market cap; otherwise, Litecoin is likely to reclaim its position.
SUI reaches a transactional milestone
Interestingly, SUI has showcased strong upward momentum over the past two months. Despite facing bearish trends, bullish support has helped maintain the last support level at $0.53.
Currently trading at $2.06, SUI has achieved remarkable gains in a short period, marked by a significant peak that saw the RSI reach overextension.
Despite concerns, the token has continued to advance, facing only minor setbacks, effectively smoothed out by the bullish momentum.
This positive momentum is supported by the network’s architecture, which seeks to overcome traditional blockchain limitations by facilitating quicker transactions without causing network congestion.
With a throughput of 270K TPS, SUI has garnered considerable interest from crypto users, achieving an impressive $6 billion in transaction volume.
This momentum previously propelled SUI to an all-time high of $2.40 just a week ago.
However, as this price range signaled a potential peak, numerous wallets started liquidating their positions, which resulted in a substantial decrease in daily transactions, dropping to $20 million.
Source: Artemis Terminal
This trend indicates that the recent surge has pushed many stakeholders into profitability, prompting weaker investors to exit.
For a rebound to occur, it is vital for new buyers to consider targeting the local low at $2 as an opportunity, expecting a rally that could yield significant returns.
If this trend persists, SUI may experience a substantial rebound, potentially setting the stage for a new all-time high. In such a scenario, its market cap could induce a ranking shift within the top 20.
Intense competition ahead
Unexpectedly, despite the growth SUI has seen over the last two months, spot traders have continued to sell off their holdings, resulting in a daily volume decrease to $30 million.
Nonetheless, the price has stabilized, which may indicate accumulation by investors—an essential factor for a rebound.
Source: Coinglass
The recent pullback has brought SUI close to the $2.05 level, marking it as an optimal entry point for holders. The recent red wick suggests that many may be considering this approach.
Read Sui’s [SUI] Price Prediction 2024-25
If this trend continues, SUI could be poised for a notable correction around the $2 mark, as a recent MACD crossover turned bearish indicates potential downward movement unless spot traders increase their buying activity.
If renewed buying interest materializes around the $2 mark, a strong rebound could ensue. However, to surpass NEAR, this rebound must propel SUI back towards $2.40.
