Sui (SUI) has been moving within a symmetrical triangle pattern for several months, gradually narrowing toward a potential breakout.
The network has just surpassed a total of 225 million accounts, reflecting significant user growth and adoption. After continuously testing lower support levels, buyers have gradually reclaimed higher lows.
At the moment, SUI has risen to $3.45, marking an increase of nearly 9% for the day. This move has pushed the price closer to the upper boundary of the triangle.
A sustained breakout above $3.50 could trigger strong growth momentum.
Therefore, the tightening price structure may put the bulls in a position to control the market, provided that volume and sentiment continue to align in their favor.
Will SUI confirm the breakout?
Over the past 90 days, the CVD data from Futures Taker on CryptoQuant shows that buying activity has dominated, with buyers consistently placing more buy orders than sell orders.
Accumulation indicates the confidence of derivative traders. Notably, aggressive buying activity aligns with the bullish momentum of SUI and reinforces the bullish triangle argument.
Furthermore, the dominance of buyers may serve as a strong support mechanism against short-term efforts to push prices lower.
If the buyers maintain control, a breakout above the triangle could be imminent.
Will the increase in open interest push SUI into a higher volatility state?
Open Interest (OI) has increased by 12.67%, reaching $1.59 billion across derivative markets. This increase reflects higher participation and risk levels as traders prepare for directional moves.
The increase in OI indicates that capital is entering the market with expectations of volatility. Therefore, the combination of rising OI and the Taker CVD index reinforces the likelihood of continued price growth.
However, if the bulls fail to keep up, leveraged Long positions may face higher downside risk.
Are short traders struggling as liquidations surge?
Currently, the volume of Short liquidations has reached $1.27 million, nearly double the $641,920 in Long liquidations.
This surge occurred on major exchanges such as Binance and Bybit, reflecting strong pressure on short positions. This imbalance shows that sellers are caught off guard as prices surge.
Moreover, Short liquidations often accompany rapid bullish candle wicks, driving growth momentum.
Therefore, the recent liquidation trend adds fuel to the current bullish rally and may trigger further momentum if Short positions continue to be unwound.
Can SUI hold above $3.5?
SUI's current setup indicates a tightening pattern, with buyers in control, OI increasing, and Short liquidations, all of which are signs supporting bullish momentum.
However, SUI needs to maintain above $3.5 to confirm the trend change.
If buyers maintain their upward momentum, SUI could continue to rise, but failure to close above this critical level could attract new selling pressure.