- SUI outperformed most coins and took the top spot in weekly returns.
- As a result, if this trend continues, LTC’s market positioning could be challenged, but what are the odds?
SUI (SUI) ended the week as the biggest gainer among the top 25 tokens, up 49% to $1.62. Currently ranked 21st, SUI’s gains have analysts speculating about its potential to replace Litecoin, which rose 8% to $68.49.
With SUI targeting a March ATH of $2.09, the odds are increasing that it will overtake Litecoin in the top 20.
SUI is overcoming adversity, but there are problems.
Source: Coinalyze
On the daily price chart, SUI started September strong, showing consistent green candles. What is notable is that SUI has since gained over 100% despite wide market volatility.
Meanwhile, LTC bears have twice blocked the breakout, preventing LTC from surpassing $65,000. However, after Bitcoin started to rally, LTC bulls have retested the $68,000 ceiling.
In summary, LTC is more vulnerable to Bitcoin’s movements, while SUI is evolving, suggesting that SUI may provide greater future value to stakeholders.
However, throughout September, the surge in SUI was driven by high volume, and the RSI surged into overbought territory, signaling accumulation. Likewise, the CMF surged above its previous resistance level. This growth rate was even higher than when SUI reached its ATH.
Simply put, the period when investor interest in SUI was high was when Bitcoin retraced to the $64,000 level, which made SUI a more attractive alternative.
If so, this raises questions about the long-term prospects of SUI and challenges the theory that it will overtake LTC. So was the 49% surge just a blip?
The chart suggests possible accumulation
As mentioned earlier, SUI’s performance last week secured it the top gainer status. Surprisingly, this impressive surge was accompanied by increased SUI inflows to exchanges.
Source: Coinglass
In short, this suggests that SUI was not affected at all by Bitcoin’s volatility. However, as highlighted in the above indicator, the accumulation of holders helped prevent a pullback.
The accumulation of price is a bullish signal, but in the long run it can be detrimental to altcoins, as many traders cash out after taking their profits. As we saw when SUI hit its ATH in mid-March, this coincided with BTC’s highs.
As a result, SUI plummeted further to $1.06 in just two weeks as BTC crashed. It has been in a downtrend since then, and only gained momentum after 180 days.
If this trend repeats, SUI may be a few days away from a solid bounce. However, if the bulls can hold the $1.70 resistance before targeting the ATH, SUI will likely outperform LTC. Why?
Growth rate is important
LTC, the 20th largest coin by market cap, has been consolidating in the $60,000 to $70,000 range for more than a month. Meanwhile, SUI has experienced a significant rally during this period.
Despite the high volume and low fees of LTC, no real performance has been observed. In fact, the volume has decreased from $1 billion in April to $246 million at the time of writing. Also, the open interest for USD has also been halved.
Source: Santiment
In contrast, SUI showed a notable increase in both volume and OI, reaching $500 million in OI and approaching $1 billion in volume.
AMBCrypto points out that these indicators show growth but are not reliable indicators of future profits. The focus is on how quickly SUI is gaining traction compared to LTC.
Read Sui (SUI) price prediction for 2024-25
The results are clear. SUI has broken through the market lows and has taken the top spot, winning support from holders. Its growth rate is significantly outpacing LTC.
Overall, if the bulls can maintain liquidity and hold the $1.70 support while targeting the ATH, SUI will have a strong chance of replacing LTC as the 20th largest coin by market cap.