SUI Attracts Significant Liquidity Influx, Long Positions At Risk Of Liquidation?

SUI has seen notable interest from investors and traders as the project has attracted a substantial influx of liquidity in the midst of rising market sentiment, underlining the growing confidence towards the crypto asset. This capital rise has increased trading activity and broadened the asset’s availability on many exchanges, indicating that the market is confident in SUI’s future performance.

Liquidity Levels Rise For SUI

A recent report from Alphractal, an advanced platform for investment data analysis, reveals that SUI’s liquidity inflow has grown significantly as investors’ interest in the blockchain’s scalability and development potential grows.

Data from the investment platform shows that SUI has been mustering major liquidity over the past three months, signaling the possibility of more long liquidations. Should the price of the digital asset drop below the $1.6 level, Alphractal has warned about the liquidation of numerous long positions.

Even though the main liquidation pool during the last month has been at the $2.2 level, the majority of the open positions, which were mostly long positions from the previous month had also been liquidated.

Furthermore, a similar trend has persisted over the last 7 days, with unliquidated shorts positions building up consistently while most of the long positions have been liquidated during the period.

Alphractal also pointed out in the report that the Open Interest (OI) of SUI has turned bearish, falling to about $370 million, signaling a potential shift in interest. This decline in open interest may indicate that traders are adjusting their positions due to uncertainty and potential volatility.

Although the funding rate is still negative, the platform noted that the Long-Short Ratio on Binance, the largest crypto exchange, OKX, and Bybit has begun to increase once again in the near term. Meanwhile, with over $5 million in liquidations in a single day, the open interest and market cap are currently positioned at almost 7%.

The Asset’s Upward Movement Set To Continue

The general crypto market has witnessed a positive performance, with SUI benefiting heavily from this shift. After a drop to the $1.7 price level, the token has been trending on the upside, attracting huge capital inflows from investors.

Presently, the digital asset is trading at $2.31, indicating an over 18% increase in the past day. However, market technician and trader, Jonathan Carter’s bullish forecast implies that the rally is not yet over, predicting a move to the $2.35 mark.

According to the analyst, on the 12-hour time frame, the token is creating a symmetrical triangle, with a strong support zone between the triangle bottom and the 100 Moving Average (MA) suggesting a possible bounce. Should the asset break out of the pattern, Carter anticipates a move towards multiple targets at $1.97, $2.11, and $2.35 in the short term.

Featured image from Shutterstock, chart from Tradingview.com