SUI has cemented its position as one of 2024’s top-performing layer-1 blockchains, occasionally surpassing even Ethereum and Solana [SOL] in performance metrics. This success was highlighted during the October market recovery, where SUI hit an all-time high, prompting a wave of buying interest and a significant price retracement. The current support level of $1.6 has become a key focal point for speculators, many of whom opened long positions around this level, creating a substantial liquidity pool.
However, this surge in speculative interest has led analysts like Alphractal to caution that SUI’s price could be at a precarious tipping point. According to Alphractal, the $1.6 level has seen massive liquidity accumulation, similar to the $2.2 level, where longs were previously opened but were subsequently liquidated during a recent market pullback. If the $1.6 support fails, it could trigger a wave of liquidations, dragging SUI’s price further down to its next support at $1.4.
Price Chart Indicators – Daily Order Block And EMA Support
On the technical front, SUI’s daily order block (OB) has played a significant role as a support level, dating back to April and continuing to act as a stronghold through September and October. This OB has reinforced $1.6 as a key support zone (often referred to as the “white zone” by technical analysts). Another significant indicator supporting SUI at this level is the 50-day Exponential Moving Average (EMA), which helped temper the asset’s price decline during late October and early November.
Should SUI hold steady above this $1.6 support, it could maintain its position for another upward movement. However, if SUI dips below this critical support level, leveraged positions might face rapid liquidation, which could send its price spiraling toward the $1.4 mark, a scenario sidelined traders are watching closely.
Spot Market and Open Interest Reflect Uncertain Demand
Despite these price mechanics, spot market demand for SUI has remained stagnant. This is illustrated by the On-Balance Volume (OBV), which shows a sideways movement, suggesting that market demand has been tepid. Open interest (OI) on SUI has also been in a downtrend since October, indicating that speculators have become cautious, particularly ahead of the U.S. elections, which historically impact market sentiment.
Whales Show Interest Despite Overall Market Caution
In contrast to retail traders, whale investors appear to have shown mild interest in SUI. The Retail vs Whale Delta metric—a gauge of whale long positions relative to retail—has registered a positive reading, signaling that some whales are betting on SUI despite broader market hesitation.
As it stands, SUI’s price is at a crucial juncture. While its $1.6 support has withstood selling pressure thus far, any dip below could expose leveraged bulls to potential losses, setting the stage for a possible liquidation cascade. For now, all eyes remain on SUI’s resilience at $1.6, with the asset’s future likely hinging on whether this level holds or breaks in the face of mounting uncertainty.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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