SUI liquidity surges as traders eye potential liquidations

SUI (CRYPTO:SUI) has garnered substantial attention from traders and investors, driven by an influx of liquidity that highlights market confidence in the asset's potential.

The increased trading activity and availability across multiple exchanges indicate that sentiment surrounding SUI is strengthening.

According to a report by Alphractal, a platform specialising in investment data analysis, SUI's liquidity has notably risen as interest in its scalability and development capabilities grows.

This surge in capital suggests that long positions could be at risk if the asset's price falls below $1.6.

Alphractal also noted that the main liquidation pool has been around the $2.2 level, with many long positions liquidated over the past month.

Recent data reveals that unliquidated short positions have been accumulating over the last week, whereas long positions have largely been cleared.

The report highlights that SUI's Open Interest (OI) has turned bearish, falling to approximately $370 million.

This decline may reflect traders' adjustments in response to potential volatility.

Despite a negative funding rate, the Long-Short Ratio on platforms such as Binance, OKX, and Bybit has started to climb in the short term.

Meanwhile, daily liquidations have exceeded $5 million, positioning the current open interest and market cap at nearly 7%.

Amid these dynamics, SUI has benefited from the broader positive trend in the crypto market.

Following a dip to $1.7, the asset has attracted significant capital inflows, pushing its price to $2.31, an 18% increase over the past day.

Market analyst Jonathan Carter forecasts further gains, noting that the 12-hour chart shows a symmetrical triangle pattern with strong support near the 100 Moving Average.

Carter suggests that a breakout could lead to targets of $1.97, $2.11, and $2.35 in the short term, signaling potential continued upward movement for SUI.

At the time of reporting, the Sui price was $2.27.