After two-month high, is another rally on the cards?

TL;DR

Sui (SUI) experienced a weekly increase of 125%, boosted by the launch of Grayscale’s Sui Trust. Despite the strong gains, the high RSI indicates that the asset may be overbought, suggesting a possible correction. The best performer

Sui (SUI) is among the few leading cryptocurrencies today (August 12) and its price has seen an impressive increase. It has risen over 9% on a daily basis and 70% on a weekly basis, currently trading around $1 (according to CoinGecko data).

Source: CoinGecko

The price of SUI began 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 offer investors familiar products that enable access to tokens at the forefront of the ongoing evolution of the crypto ecosystem,” the entity said at the time .

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

X user Andrew Kang also gave his two cents, claiming that the combination of some important factors indicates “exciting developments ahead for SUI.” Some of the elements represented include Pal interaction, aggressive token price action with no pullback, and strong ownership through large unlocks.

There are some rumors that certain X users were paid to endorse SUI. Altcoin Sherpa said that if this were true, they would submit their name as “this looks pretty good”. However, the analyst recalled potential near-term issues, stating that the price needs to cross the 200-day exponential moving average (EMA) to continue the uptrend.

The main indicator is flashing the sell signal

Despite the overall bullish stance of crypto enthusiasts, one important metric suggests that the SUI could be headed for a fall 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 indicates that the asset is overbought. This, in turn, could indicate that the price could experience a correction. The RSI is currently sitting at almost 80.

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