Sui is down 10% from Sunday's peak: What's behind this correction?

Sui (Sui) just dropped nearly 10% from its peak on Sunday, leading many to question whether the altcoin's recent rally is losing momentum.

This drop comes after Sui surged by nearly 40% over the past week, becoming one of the best-performing altcoins on the market.

Sui Staking has supported the price increase.

Market data shows that Sui reached a daily high of $1.42 on Sunday, its highest price since the end of January 2024, before reversing and falling. A key factor driving the rally was Sui Group Holdings.

The company revealed that it has increased its total Token reserves to 108,728,129 Sui. Furthermore, almost all of these Token have been Staking at an estimated interest rate of approximately 1.8% per year. This move has helped remove an additional 2.7% of the circulating supply from the market.

“Two other factors also contributed: the launch of Sui Futures Contract on the CME Group on May 29, 2024 ( Sui is the fifth Layer 1 licensed Derivative product), and a partnership with Paga on cross-border payments in Africa,” Santiment stated.

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The reason behind Sui 's 10% discount.

Despite its earlier strong surge, Sui has reversed course and is now declining. At the time of writing, the altcoin is priced at $1,273 , down 4% in the last 24 hours and nearly 10% lower than Sunday's peak.

The main reason for the correction was that the Relative Strength Index (RSI) of Sui surged into the overbought zone at 84.4 before correcting down to 75.94, indicating that this decline was a natural correction after the price had risen too sharply.

Not only Sui, but the crypto market in general also weakened, with the total market Capital decreasing by 0.33% over the past day as many altcoins corrected.

“The RSI yesterday touched 84 – overbought. A correction is inevitable. The overall market has also shifted to a defensive sentiment, with $680 million in Capital outflows from BTC, ETH shifting to stablecoins. Sui isn't the only coin being sold off – the entire market is declining,” commented one analyst.

Network activity continues to grow strongly.

Meanwhile, on-chain activity within the Sui Network ecosystem remains strong. According to data from defillama, the Total Value Locked on Sui has increased to approximately $653 million, significantly higher than the $541.9 million recorded at the beginning of May 2024.

The supply of stablecoins on the Sui network also increased by 4.5% in just the past week, while volume on decentralized exchanges surged by over 200%.

Santiment also noted that Sui 's "social media dominance" during this rally ranged from 0.13% to 0.15%, still significantly lower than its record high of 0.38% on May 6, 2024.

"The amount of discussion on social media isn't increasing faster than the price. The fact that large institutions are locking in supply to drive prices up will be a different on-chain signal than the FOMO trend from retail investors," the article added .

However, the current price of Sui is still 76% lower than its all-time high and below its peak in early 2026, leaving the Token in negative territory since the YTD .

Therefore, for Sui to return to its January 2024 peak, investor interest and funding from large companies need to be stronger than the number of Token unlocked monthly . Continued network growth and stable buying pressure will be key factors determining Sui's potential for further price increases.

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