According to liquidation data, SUI stock faces a potential liquidation of $96 million if its price reaches $3.48. This would primarily affect short traders, who have positioned themselves for a price decline.
If the SUI stock rises to this critical level, short contracts will be liquidated, forcing traders to cover their positions, which will further increase the price.
This potential liquidation event highlights the volatility of the SUI stock and the risks involved for traders betting against it. As the price rises, short sellers may be forced to cover their positions, unintentionally fueling the upward trend.
As a result, this scenario may exacerbate the price rise, putting both short sellers and long traders at the mercy of unexpected price movements.
Despite the recent 12% rise, the Chaikin Money Flow (CMF) indicates a decline, suggesting a lack of investment inflows. The Chaikin Money Flow currently shows negative momentum, indicating that investors are not fully supporting the rise in SUI stock price.
The recent gains appear to be driven more by short covering than by a broad increase in buying interest.
If outflows continue, the SUI stock price may face additional pressure. A lack of strong buying support, along with a declining Chaikin Money Flow indicator, suggests that the recent rise may not be sustainable.
If these outflows continue, they could lead to a reversal in price direction, undermining the optimism resulting from recent gains.
At the time of writing this report, SUI stock is trading at $3.27, having risen 12% over the past 24 hours. The price currently faces resistance at $3.33, which has proven to be an important barrier in the past.
Given the ongoing outflows, it seems unlikely that the SUI stock will break this resistance level in the near term.
If the SUI stock fails to break the resistance level at $3.33, it may retreat to lower levels, such as $3.13 or $2.91, erasing recent gains. This would indicate a continuation of the consolidation phase, as the lack of strong buying pressure prevents further upward movement.
Analysis of SUI stock price. Source: TradingView
However, the Parabolic SAR indicator is approaching a key level, with a potential reversal below the candlesticks that may indicate the beginning of an upward trend.
If the SUI stock successfully breaks the $3.33 level, the price may rise to $3.48. Breaking this level would nullify bearish expectations, leading to a wave of liquidation on short positions and further boosting the price.
