The Sui Network (SUI) has seen significant growth in the cryptocurrency market, but this has led to multiple 'Overbought' statuses and bearish divergences, indicating a potential selling opportunity. The token has reached a new all-time high and many holders are likely to sell, as they are in profit. SUI has gained 184% year-to-date, with most of the gains occurring in the last 30 days. The token also displays an overbought status in various time frames according to the Relative Strength Index (RSI). The daily price chart shows an overbought SUI and a bearish divergence, suggesting a reversal from the rally. Multiple indicators and analysts predict a reversal and a potential correction wave for SUI. Despite these concerns, SUI has gained attention for its technology and user experience. Circle has deployed its stablecoin on the Sui Network and Grayscale has announced a SUI trust for institutional exposure. However, there are concerns about SUI's tokenomics, with a high distribution to private investors and locked tokens. Less than 30% of all distributed tokens are in circulation, leading to a high fully diluted value and increased asymmetry against retail traders and investors. October will see a $100 million monthly unlock of SUI tokens. In conclusion, while SUI has positive long-term prospects, its current overbought status and bearish divergences suggest a near-term correction and weakening of its price.



Other News from Today