SUI price drops 7% in 24 hours, breaking below key liquidation zone around $3.93

This liquidation heatmap highlights the dense cluster of long liquidations around the $390 to $395 mark, with high concentration around $3933.

Sui price slipped on Wednesday, extending losses after breaking below a key liquidation zone and increasing the chances of further downside in the near term.

What Happened: The crypto heatmap by The Kingfisher highlighted dense clusters of long liquidations around the $3.90 to $3.95 mark, with a particularly high concentration at $3.933.

As SUI fell below this level, leveraged long positions were liquidated, adding to the selling pressure. This liquidation zone acted like a black hole, drawing the price downward and exacerbating the price decline.

However, there were fewer short liquidations to be seen above the price, which indicated limited “thrust” for a short squeeze to propel the price higher in the short-term.

"As SUI broke below the $3.90-$3.95 (WTI) and approached $3.73, it encountered a critical support zone that could buffer further downside," the analyst noted.

The crucial support zone was formed by the lows of the recent price drop and could hold the price from falling to new lows. A break below this zone, especially with ongoing liquidations pressuring prices lower, could open the door for a steeper decline.

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The 24-hour volume also decreased by 24.09%, indicating a decline in trading activity, which could precede increased volatility in the coming hours.

On the other hand, if SUI manages to close a day above $4.35, it could confirm bullish continuation and potentially send the coin toward a new all-time high above $5.35.

Ben Armstrong, host of the crypto YouTube channel "Armageddon Best," is still waiting for SUI to hit $10, aiming for an "absurdly high" price target of $1,000.

"I’m still waiting for SUI to hit $10. I’ve got my absurdly high price target of $1,000. I’m going to be holding my SUI until they pry it from my cold, dead, pale hands and throw my body into the uncaring void of space," Armstrong said.

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Why Is SUI Important: Sui is a new Layer-1 blockchain developed by Mysten Labs, a startup founded by former Meta engineers who developed the blockchain used in the company’s failed cryptocurrency project, Novi.

The token is designed to be highly scalable, secure, and user-friendly, and it is compatible with the Ethereum Virtual Machine (EVM). Sui is also focused on Web3 gaming and the creator economy.

The crypto is currently trading at $3.73, down 7.07% over the past 24 hours.

The Great Sui Odyssey event, set to take place on May 17, is generating significant anticipation within the crypto community. The event is expected to introduce new products and partnerships, which could have a positive impact on the token's price in the long run.

The post SLI Price Drops 7% As Key Liquidation Zone Provides Support appeared first on Benzinga.com.