Sui Network (SUI) is attracting attention by showing a rapid rise in the cryptocurrency market. However, the "overbought" situations seen in some time frames along with the rise of this altcoin indicate that it may present selling opportunities in the short term. Market analyzes reveal that the SUI token has entered the overbought zone with various indicators.

Momentum Shift and Investor Optimism$SUI

Sui Network is experiencing strong bullish momentum, with the overall market sentiment being positive. The SUI token is testing a new all-time high, with investors showing increasing optimism. However, this is creating liquidity opportunities for large and early investors. Historically, a cryptocurrency peak is a time when investors start to realize their profits, and this could be the case for SUI as well. Since the beginning of the year, SUI has gained 184%, with 118% of this increase occurring in the last 30 days. This rapid rise could lead to major players realizing their profits.

RSI and Overbought Signals

According to analyst Vinicius Barbosa’s analysis based on CoinGlass’ RSI (Relative Strength Index) heatmap, Sui Network’s token is in the overbought territory on almost all time frames. The RSI is a popular technical indicator used to determine whether an asset is overbought or oversold. SUI reportedly reached RSI values ​​of 73.43, 74.7, 71.65, 73.84, and 72.68 on the 1-hour, 4-hour, 12-hour, 24-hour, and 1-week time frames, respectively. RSI values ​​above 70 indicate that the asset is overbought and selling pressure may increase. The current status of SUI suggests that a price correction may be in the offing in the short term. When examining the daily price chart, it can be seen that SUI reached a new high of $2.29, but has started to pull back from this level. This is supported by the emergence of a bearish divergence in RSI indicators.

Bear Divergence and Possibility of Price Correction

Bearish divergence occurs when the RSI falls while the price rises, and is often considered a sign of a price decline. The SUI price chart is signaling a bearish divergence since late September, with the RSI making three consecutive higher highs while the SUI making three consecutive lower highs. This increases the possibility of a price correction. Based on this price action, analysts predict that the SUI could fall by 20% to 40%.

Potential and Concerns of Sui Network

Sui Network continues to attract the attention of crypto investors with its strong technological infrastructure and user-friendly experience. The SUI token is considered by some commentators as a potential competitor to Solana (SOL). This perception has brought large capital flows to Sui Network. The integration of Circle’s dollar-pegged stablecoin USDC directly into the Sui network has given new momentum to the ecosystem. In addition, Grayscale’s launch of an investment fund for the SUI token has opened the doors for institutional investors.

However, the tokenomic structure of Sui raises some concerns. In particular, a large portion of SUI tokens have been distributed to private investors and Mysten Labs. Less than 30% of the total tokens in circulation have been offered to investors, while a large portion is still locked. This creates an asymmetric market structure for small investors. The unlocking of approximately $100 million for SUI tokens in October may be a sign of major selling pressure. Early investors and Series A, B investors will have the largest share of these unlocks.