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

SUI has seen notable interest from investors and traders because the project has attracted a considerable influx of liquidity within 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, a complicated platform for investment data evaluation, reveals that SUI’s liquidity inflow has grown significantly as investors’ interest within 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 potential for more long liquidations. Should the worth of the digital asset drop below the $1.6 level, Alphractal has warned in regards to the liquidation of various long positions.

Regardless that the major liquidation pool in the course of the last month has been on the $2.2 level, nearly all of the open positions, which were mostly long positions from the previous month had also been liquidated.

SUI sees a considerable inflow of liquidity | Source: Alphractal on X

Moreover, the same trend has endured over the past 7 days, with unliquidated shorts positions increase consistently while a lot of the long positions have been liquidated in the course of the period.

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

Although the funding rate remains to be negative, the platform noted that the Long-Short Ratio on Binance, the most important crypto exchange, OKX, and Bybit has begun to extend once more within 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 Proceed

The overall 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 previously day. Nonetheless, market technician and trader, Jonathan Carter’s bullish forecast implies that the rally just isn’t yet over, predicting a move to the $2.35 mark.

Based on the analyst, on the 12-hour time-frame, the token is making a symmetrical triangle, with a robust 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 within the short term.