The trading volume of Sui's decentralized exchange (DEX) has seen significant growth, reaching a total trading volume of $90.79 billion as of May 15. This marks an 89.88% increase in DEX trading volume year-to-date.

It is noteworthy that the Cetus protocol accounts for 58.83% of the total volume, becoming the dominant player in the ecosystem.

This increase reflects enhanced on-chain participation, especially on native platforms. As of this writing, SUI's trading price is $3.72, down 5.36% on the day, but the ecosystem's usage rate continues to grow.

Retail enthusiasm is rising, but traders are hesitant.

According to Santiment data, SUI's social dominance has climbed to 1.24%, while the weighted sentiment index has risen to 2.30. These peaks indicate increasing interest and discussion about SUI across various social channels.

Historically, such moves often precede or accompany speculative rebounds, especially when aligned with increased network activity.

SUI's derivatives indicators show a clear cooling off. Derivatives trading volume has decreased by 19.65% to $3.57 billion, and open interest has dropped by 12.18% to $1.61 billion.

This decline indicates a decrease in trader participation and a reduction in speculative positions. In many cases, this reflects uncertainty or profit-taking after price fluctuations.

Will stable funding rates trigger a squeeze?

Binance's liquidation chart shows a large amount of short liquidations between $3.75 and $4.00.

The price of SUI at the time of writing is $3.709, slightly below this area, indicating that moderate upward pressure may trigger forced liquidations.

The cumulative short liquidation leverage in this area exceeds $25 million, exposing it to sudden price spikes.

Despite price fluctuations, funding rates remain low. As of this writing, the total funding rate is 0.01%.

This flat structure reflects market equilibrium, with leveraged traders not exhibiting extreme bullish or bearish tendencies. This neutral rate reduces the likelihood of sudden market reversals triggered by over-leveraged positions.

Is SUI ready to break out within its channel?

As of the time of writing, SUI trading is within a clear upward channel, with support around $3.53 and resistance around $4.58.

The price recently reached $3.72, hovering near the middle of the channel. The 9-day EMA is at $3.95, while the 21-day EMA has slightly risen to $3.98.

Meanwhile, the MACD line shows weakening momentum, with the signal line at -0.0267 and the MACD at -0.0385. Although the structure remains intact, bulls must hold the middle area to maintain the continuation of the trend.

SUI's growing DEX usage, heightened social sentiment, and potential for short liquidations create favorable conditions for sustained bullish momentum.

However, the weakening of derivative activity and stable funding rates highlight traders' cautious sentiment.

Whether SUI can break through $3.90 and reclaim the upper channel level will depend on new demand and ongoing ecosystem participation.