SUI Surges Past AVAX, But Analyst Warns of Potential Correction

Sui (SUI), a rival to Solana (SOL), has seen a significant increase in trading volume, surpassing Avalanche (AVAX) with a 4% price gain. This news comes as SUI's trading volume hit $615 million, marking a notable milestone in the cryptocurrency market.

Analyst Jason Pizzino has warned that SUI may be at risk of a severe correction, citing a historic pattern that could lead to a collapse. Pizzino, who has 345,000 YouTube subscribers, believes that SUI's recent price action is reminiscent of its April to August 2024 performance, when it initially crashed from about $2 to below $1 before witnessing another deep corrective move.

Pizzino explains that SUI saw an overbalance in time and price following its collapse to a low of $2.38. The overbalance means SUI went down longer in price and further in time than any corrective period it witnessed during this bull market. With the current setup, the trader says SUI may be following in the footsteps of its previous price action.

Pizzino warns that if SUI cannot hold $2 as support on the daily chart, it may dip to $1.60 or even lower, which would be in line with the 2024 pattern. He suggests that if SUI gets these next couple of panic lows, it could potentially drop back to the $1.60 level, maybe even $1.10 or $1.20 at those previous tops, or even back down into that zone around $0.73.

At the time of writing, SUI is trading for $3.60, up 14% in the last 24 hours. This recent price gain comes amidst a backdrop of increased trading volume, indicating a growing interest in the cryptocurrency. However, as Pizzino's analysis suggests, the future price action of SUI remains uncertain, and investors should remain vigilant to potential market fluctuations.