Sell time? Overbought cryptocurrency signals a bearish reversal
The post Sell time? Overbought cryptocurrency signals a bearish reversal appeared on BitcoinEthereumNews.com.
The Sui Network (SUI) has escalated the cryptocurrency market ranks at an impressive speed and price performance amid growing demand. This, however, raised multiple ‘Overbought’ statuses in different time frames, together with bearish divergences that could signal a selling opportunity. Overall, SUI’s momentum is strong, and the crowd’s sentiment is dominantly bullish as the token tests a new all-time high. Yet, this makes the perfect opportunity, liquidity-wise, for whales and early investors to sell and realize massive gains. The fundamental problem with an all-time high is that most holders are in profit and more likely to sell. SUI currently accumulates 184% gains year-to-date, most of which it acquired in the last 30 days, up 118%. Moreover, Sui’s token displays an overbought status for its Relative Strength Index (RSI) in all time frames except the 15-minute. Finbold retrieved this data from CoinGlass‘s RSI heatmap on October 13, with SUI as the only weekly overbought cryptocurrency. In particular, Sui’s RSI marks 73.43, 74.7, 71.65, 73.84, and 72.68 at the 1-hour, 4-hour, 12-hour, 24-hour, and 1-week time frames, respectively. Crypto Market RSI Weekly Heatmap – SUI overbought. Source: CoinGlass / Finbold Overbought SUI price analysis and bearish divergence Looking at Sui’s daily price chart, according to TradingView‘s crypto index, gives us a similar result of an overbought SUI. The daily RSI marks 72.07 in this index at $2.21, retracing after reaching a $2.29 all-time high. Notably, the chart also displays a bearish divergence starting on September 24, which could suggest a reversal from this rally. The bearish divergence appears with SUI’s price making three subsequent higher highs while the RSI makes three subsequent lower highs. We also spotted this pattern in the weekly and 4-hour chart against the dollar. SUI daily price analysis and bearish divergence. Source: TradingView / Finbold What other technical…
Filed under: News - @ October 13, 2024 11:26 am