Key Takeaways
- SUI faces potential liquidations of up to $96 million if the price reaches $3.48, primarily impacting short traders and potentially fueling further price gains through forced buying.
- Despite the recent 12% price rally, technical indicators like the Chaikin Money Flow (CMF) suggest weak investor inflows, raising concerns about the sustainability of the uptrend.
The recent surge in SUI’s price has stirred both excitement and caution among traders. While a 12% rally within 24 hours demonstrates strong upward momentum, underlying indicators and liquidation data suggest the rally might carry hidden risks—particularly for short traders betting on a price drop.
SUI Traders Face Potential $96 Million Liquidations
According to liquidation data, SUI is on the brink of triggering up to $96 million worth of liquidations if its price reaches the critical resistance level of $3.48. This figure primarily threatens short traders who have positioned themselves anticipating a decline. Should SUI’s price climb to this threshold, these short contracts would be forcibly liquidated, compelling traders to cover their positions. This forced buying could further accelerate SUI’s price surge, creating a feedback loop that intensifies volatility. Such liquidation risks underscore the unpredictable nature of SUI trading and warn that betting against the token may come at a high cost.
Weak Buying Pressure Clouds Sustainability of Rally
Despite the price rally, technical analysis reveals worrying signs for SUI’s short-term outlook. The Chaikin Money Flow (CMF) indicator, which measures money inflows and outflows, currently shows negative momentum. This suggests that the recent gains are driven less by fresh buying and more by short covering, where traders buy to close losing positions. Without robust investment inflows backing the price, the rally may lack the foundation for sustained growth. Continued outflows could exert downward pressure on SUI’s price, potentially causing a reversal that erodes the optimism created by recent gains.
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Key Resistance Levels Determine Next Move
At present, SUI is trading near $3.27, confronting a significant resistance level at $3.33 that has previously capped price advances. Failure to break this resistance may see SUI retracing to lower support levels such as $3.13 or $2.91, prolonging its consolidation phase. However, technical signals like the Parabolic SAR indicator hint at a possible trend reversal in favor of bulls.
A successful breach of $3.33 could propel SUI toward $3.48, triggering a cascade of short liquidations and further boosting the price. Traders should monitor these levels closely, as the next moves will shape SUI’s near-term trajectory and risk landscape.
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
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
