Key Insights
- Short positions above SUI are valued at over $144M, indicating a high forced-buying potential.
- At $0.95 -$1.00, technical support matches with liquidation clusters, increasing volatility.
- The resistance of $1.74 upside triggers might be broken, whereas the downside risk is low near $0.72.
SUI is under the spotlight, with roughly $144M in short positions sitting vulnerable above current prices. The layer-1 blockchain token is trading at $0.96 and has fallen 6.4% in 24 hours.
Analysts observe this entails a powerful upside bias since short liquidations might result in intense forced purchases in case SUI goes to $1.74. Technical indicators and multi-month support Market structure indicate that any minor movements may result in a rapid increase in volatility.
The imbalance between shorts and longs indicates that traders are highly bearish and the market is vulnerable to upward triggers. In Binance, shorts will be exposed at $16.18M at around $1.25, with the long exposure being thinner, which further lends credence to the bullish action.
Short Liquidations Create Skewed Upside Risk for SUI
Current data spotlights almost six times as many short positions at risk as compared to long positions. In the exchanges, a total of $143.9M in shorts are subject to liquidation as the SUI rises to $1.74. In contrast, the longs have a value of $25.7M at risk if the price drops to $0.72.
Hyperliquid data indicate that there are dense, short clusters at values of $1.15- $1.57, with supplementary concentrations at $1.61, $2.22, $4.30, and $6.70. Long positions are light up to $0.47, indicating that the fuel to the downside is low.
In Binance, short liquidations above $1.25 are more than long liquidations below $0.73, which confirms an asymmetric structure with the potential of an upward price trend (as a stimulus) to cause cascading short covering.
This structural imbalance implies that leverage positioning has a strong potential to determine the volatility of SUI in the short term, as opposed to underlying influences.
Technical Support Suggests Reversal Potential
The weekly chart of SUI shows the token is pushing up against a multi-month support channel. The momentum indicators are in an oversold position, and the Weekly Hypertrend moves with the prevailing prices.
Additional support is found at high-volume nodes near $0.95, which might compress price responses if shorts are obliged to cover.
According to analyst CryptoPatel, the primary accumulation area is between $0.50 and $0.80, and a liquidity sweep around the support level will occur before any significant accumulation.
Resistance near $1.00 is crucial; surpassing this level could trigger a push toward $1.70–$1.80. Despite a corrective downtrend and trading below the 20-week moving average of $1.68, the current positioning creates conditions for upside-driven volatility.
The weekly RSI of 31-35 and stabilized Bollinger Bands suggest that selling pressure may be almost exhausted. In case SUI establishes a stronger low of over $0.90-$1.00, it would be the onset of a technical reversal.