Following the Two-Month High, Is a New Rally in the Cards?

TL;DR

• Sui (SUI) saw a 125% weekly increase, driven by the launch of Grayscale’s Sui Trust.
• Despite strong gains, the high RSI indicates that the asset might be overbought, suggesting a potential correction.

The Top Performer

Sui (SUI) is among the few leading cryptocurrencies today (August 12), and its price has charted an impressive increase. It is up over 9% on a daily scale and a whopping 70% weekly, currently trading at around $1 (per CoinGecko’s data).

SUI’s price started its significant ascent last week, shortly after Grayscale launched a Sui Trust focused solely on investing in the underlying asset. The company also introduced a Bittensor Trust.

“With the launch of Grayscale Bittensor Trust and Grayscale Sui Trust, we continue to provide investors with familiar products that enable access to tokens at the cutting edge of the crypto ecosystem’s continued evolution,” the entity said at the time.

The asset’s rally caught the eye of many industry participants. Raoul Pal – founder and CEO of Real Vision – recently described Sui as “the groundbreaking ultra-fast L1, super efficient, full blockchain ecosystem that came out of Meta’s Diem project.” He said SUI is on his radar screen as “one of the potential fastest horses in the race.”

The X user Andrew Kang also gave their two cents, claiming the combination of some important factors hints at “interesting developments upcoming for SUI.” Some of the depicted elements include Pal’s interaction, the aggressive price action of the token with no pullback, and solid holdership via big unlocks.

There are some rumors that certain X users were paid to endorse SUI. Altcoin Sherpa said if that were true, they would put their name forward as “this thing looks pretty good.” However, the analyst reminded about potential troubles in the short term, claiming the price needs to cross the 200-day Exponential Moving Average (EMA) to continue the uptrend.

Major Indicator Flashes the Sell Signal

Despite the overall bullish stance of crypto enthusiasts, one important metric suggests that SUI might be headed for a downfall in the near future. This is the Relative Strength Index (RSI) which measures the speed and change of price movements. 

The momentum oscillator ranges from 0 to 100 as a ratio above 70 signals that the asset is overbought. This, in turn, could indicate that the price might experience a correction. Currently, the RSI stands at almost 80.