A Critical Liquidation Zone for SUI
Analysis of liquidations by trader The Kingfisher highlights a strong concentration of leveraged long positions around $3.93 for SUI. The drop below this level triggered a cascade of liquidations, exacerbating the price decline.
This liquidation point acted as a black hole, pulling the price down. Furthermore, the lack of short positions to be liquidated above the price indicates weak short-term potential for a short-squeeze.
Although SUI holds above the tecnical support level between $3.73 and $3.85, a break below this range could trigger a more significant decline, especially with ongoing liquidations weighing on long positions.
In terms of volumes, there is a 24% decrease over 24 hours, indicating a decline in trading activity, often a precursor to increased volatility on exchanges.
Potential for a Bullish Rebound
Despite that, SUI remains on an overall positive trend, with a gain of nearly 68% over the past month. A breakout above the resistance at $4.35 would confirm the continuation of the bullish trend and could propel SUI towards new all-time highs above $5.35.
While SUI is currently going through a crucial period, short-term traders are advised to exercise caution and carefully monitor liquidation and support levels.
Nevertheless, the underlying trend remains positive, with strong fundamentals such as the launch of the Axelar bridge, integration of Phantom and Binance Alpha. The “Great Sui Odyssey” event on May 17 could also generate renewed interest. In the long term, SUI’s potential seems to remain intact.
