SUI coin was one of the best performing top coins in April but it has commenced May with a bit of profit-taking. As a result, SUI price action has been cooling down, necessitating a look at other key performance metrics pertaining its native network.
To recap, SUI bulls pulled off a 124% upside from the cryptocurrency’s lowest price level in April. Its aggressive rally was bound to trigger some profit-taking among short term holders at some point.
The latest SUI crypto rally peaked at $3.87 on 28 April and has since pulled back by roughly 13% at its press time price level. This means the last 7 days have mostly been bearish as profit-taking intensified. SUI exchanged hands at $3.26 at press time.
The surge in sell pressure was mostly due to the fact that SUI crypto was deeply overbought. As such, a probability of downside was quite high. But, just how further down can SUI go?
SUI Coin Spot Flows Confirm Significant Slowdown in Demand
SUI spot flows switched heavily in favor of outflows since 28 April. As a result, the amount of liquidity flowing out of the cryptocurrency was on the rise. SUI spot outflows surged as high as $37.2 million on 2 May.
They surged to the highest level observed more than 6 months. This puts to perspective the level of outflows that occurred in the last 7 days.
Meanwhile, derivatives activity also cooled down considerably in line with demand cooling down. For example, on-chain volumes peaked at $12.23 billion on 26 April but has since cooled down to $4.36 billion in the last 24 hours.
The declining volume reflected declining SUI coin bullish volumes, paving the way for some sell pressure. The recent sell pressure might also be fueled by long liquidations.
The recent spike in positive funding rates was the highest spike observed in more than 2 months. It signified that the markets anticipated more upside, which may have pushed the level of liquidations even higher.
While on-chain data demonstrated that the bullish momentum was cooling down, it was also worth noting some of the most noteworthy achievements. For example, SUI achieved a new ATH in terms of open interest in the last 24 hours.
In other words, the demand for SUI just clocked new highs indicating that the cryptocurrency has been gaining popularity. This may signal that the cryptocurrency might experience more upside during bullish phases of the market.
