In the last 24 hours, SUI has risen by 12%, which has restored some confidence among investors. However, if the price reaches a key level, traders will start to face problems.
The recent rise is a double-edged sword with potential consequences for traders betting on a decline.
Traders may face losses
The potential rise of SUI could trigger a mass liquidation of short positions amounting to $96 million if the price reaches $3.48. When traders betting on a decline are forced to close their positions, a chain reaction will begin, accelerating the price drop.
SUI liquidation map. Source: Coinglass
The price has risen by 12%, however, the Chaikin Money Flow (CMF) indicator shows negative dynamics, indicating insufficient investment inflow. The current rally is likely due to the closing of short positions rather than active interest from buyers.
Capital outflows threaten the upward trend. The lack of significant support from buyers combined with a falling CMF may lead to a trend reversal for SUI and negate current achievements.
SUI CMF. Source: TradingView
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SUI price is attempting to rise sharply
In the last 24 hours, the token has increased by 12% and reached $3.27. The price is currently testing critical resistance at $3.33, which has repeatedly held back the asset's growth. In the face of capital outflows, it is unlikely that the price will overcome this mark in the short term. A failed breakout may trigger a pullback to levels of $3.13 or $2.91, leading to a continuation of the consolidation phase.
SUI price analysis. Source: TradingView
The Parabolic SAR indicator is approaching a significant level, and its reversal below the candles may signal the start of an upward trend. If resistance at $3.33 is overcome, the price will surge to $3.48, which will not only negate the bearish scenario but may also trigger a mass liquidation of short positions.