Key Takeaways:
- SUI token price pumped 30% since Aug 18.
- The token’s trading volumes soared accordingly.
- Is a bearish reversal in store for the coin?
YEREVAN (CoinChapter.com) — SUI, the native token of the digital asset ownership platform Sui Network, jumped 4% to $0.60 on Aug 24. The gains came as a part of a broader rally wherein its price has surged 30% in a week, measured from its Aug 18 bottom of $0.47.
Notably, the trading volumes rose alongside the price, suggesting a reasonable upside momentum in the SUI token market. Additionally, SUI’s daily volumes on 24-hour adjusted timeframes were $320 million, outpacing the top ten cryptos by capitalization.
Will SUI continue to rise?
While the high trading volumes signify demand for the token, several short-term bearish factors must be considered. For instance, the price chart above shows an overbought relative strength index (RSI).
As the RSI gauges the most profitable market entry and exit points, a reading above 70 prompts traders to secure their gains and exit. While an overbought RSI alone cannot predict a bearish reversal, it could contribute to a stall before another possible leg up.
An on-chain data provider, Santiment, also flashed warning signs, as the developer activity on the platform had declined in the previous two weeks, while the social engagement (blue vertical bars) showed signs of revival in the previous two days, due to the Sui Kiosk hype.
If SUI stalls, it could decline to the significant rising support at $0.55, an 8% drop for the coin. However, if the trading volumes continue to rise, a likely target would stand above the support-turned-resistance at $0.61, which the coin repeatedly retested on Aug 24.
Can Sui Kiosk propel the Network?
According to the latest announcement, Sui Kiosk is a “decentralized system for commerce applications” on the network comprising separate Kiosks.
The latter are “shared objects owned by individual parties which store assets and allow listing them for sale as well as utilize custom trading functionality – for example, an Auction,” explains the website.
The team also commented that the Kiosk system lets participants set up an online store and sell digital assets, including NFTs. Users can also set royalty policies that get automatically enforced, helping creators earn from their work.
However, the decline in development activity is not a positive reflection of Kiosk’s popularity as of Aug 24. Thus, more data is needed to evaluate SUI’s prospects accurately.
