The coin has seen $SUI
Recently increased by 12% over the past 24 hours, restoring some confidence for investors. However, this price increase could prove disastrous for traders, as it may lead to significant liquidations if the altcoin reaches a key price level.
The recent rise is a double-edged sword with potential consequences for short traders.
SUI traders are facing losses
According to liquidation data, SUI faces potential liquidations of $96 million if its price reaches $3.48. This will primarily affect short traders who have positioned themselves for a price decline.
If SUI rises towards this critical level, short contracts will be liquidated, forcing traders to cover their positions and driving the price increase further.
This potential liquidation event highlights the volatility of SUI and the risks it poses to traders betting against it. As the price rises, short traders may be forced to exit their positions, inadvertently fueling the upward trend.
As a result, this scenario may exacerbate the price increase, putting both short and long traders at the mercy of unexpected price movements.
SUI Liquidation Map.
Despite the recent 12% rise, the Chaikin Money Flow (CMF) indicator points to a decline, indicating a lack of investment inflows. The CMF is currently showing negative momentum, suggesting that investors are not fully supporting the rise in SUI's price.
The recent gains appear to be driven more by short covering rather than a broad-based increase in buying interest.
If outflows continue, the price of SUI may face additional pressure. The lack of strong buying support, coupled with the decline in CMF, suggests that the recent rise may not be sustainable.
If these outflows continue, they could lead to a reversal in price, reducing the optimism stemming from recent gains.
SUI CMF.
Attempt to increase SUI price
At the time of writing this report, SUI is trading at $3.27, having risen by 12% in the past 24 hours. The price is currently facing resistance at $3.33, which has proven to be an important barrier in the past.
Due to the ongoing outflows, it seems unlikely that SUI will break this resistance level in the near term.
If SUI fails to break the resistance level of $3.33, it may retreat to lower levels, such as $3.13 or $2.91, erasing recent gains. This would indicate the continuation of a consolidation phase, where a lack of strong buying pressure prevents further upward movement.
SUI Price Analysis.
However, the Parabolic SAR indicator is approaching a key level, with the potential for a reversal below the candles that may signal the start of an upward trend.
If SUI successfully breaks $3.33, the price may rise to $3.48. Breaking this level would invalidate the bearish outlook, leading to a wave of short liquidations and further boosting the price.
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