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.

A Critical Liquidation Zone for SUI

Analysis by trader The Kingfisher on trader terminal reveals a significant cluster of leveraged long positions in SUI at $3.93. This level acted as a critical liquidation point.

As SUI price dropped below $3.93, it triggered a chain reaction of liquidations, further exacerbating the downward price move.

The large volume of liquidations at $3.93 can be seen on the chart, and it acted almost like a black hole pulling the price down.

Crucially, there are no short positions to be liquidated above the current price, indicating a lack of immediate potential for a short-squeeze to push the price up.

SUI is currently holding above a technical support level between $3.73 and $3.85. However, a move below this range could open the door for a more substantial decline, especially with the ongoing liquidations putting pressure on long positions.

In terms of trading volume, it has decreased by 24% over 24 hours, suggesting a reduction in trading activity, which could lead to increased volatility on exchanges as smaller volumes tend to amplify price fluctuations.

Potential for a Bullish Rebound

On a broader time-frame, SUI is still in a long-term uptrend, gaining nearly 68% over the past month. A breakout above the next resistance at $4.35 would signal the continuation of the bullish trend and could propel SURL to reach higher targets like $5.35 or even new all-time highs above $5.35.

Short-term traders should proceed with caution and pay close attention to key liquidation and support levels, especially in the context of the current market volatility.

However, the long-term potential of SUI remains, with upcoming events like the launch of the Axelar bridge, integration with Phantom and Binance Alpha wallet, and the “Great Sui Odyssey” event on May 17 likely to generate interest.