Stablecoin inflows and Open Interest have suggested rising speculative confidence in SUI, a blockchain that recorded the highest stablecoin inflows in the past 24 hours. This influx of $6.1 million in stablecoins indicates growing demand and on-chain activity, potentially reflecting investor confidence in SUI’s near-term outlook. The surge in liquidity from stablecoins acts as dry powder that could be deployed into native assets, adding potential upside pressure.
Open Interest on SUI has also rapidly risen by 30.64%, reaching $785.35 million. This increase in Open Interest highlights aggressive positioning in the derivatives market as traders prepare for potential price volatility. When combined with rising stablecoin inflows, the simultaneous rise in both metrics could suggest that traders expect a decisive move from SUI in the near future.
Price action on SUI is eyeing key resistance levels after a bullish push, with the formation of a cup and handle pattern on the daily chart. The price is currently trading at $2.16, up 12.82% over the last 24 hours, with the potential for a breakout at $2.23. If momentum holds and the price breaks out, the next significant target could be $2.80. This pattern, along with growing momentum, could position SUI for a potential trend reversal.
Recent liquidation events on SUI have seen overleveraged bulls being flushed out as $860.6k in long liquidations occurred compared to just $269.3k in shorts. These liquidations act as reset buttons, clearing excessive leverage and setting the stage for a more sustainable move. The altcoin’s OI-weighted funding rate has also turned slightly positive, suggesting renewed confidence among traders despite recent volatility.
Overall, SUI appears to be showing promising signs of a potential breakout, with strong stablecoin inflows, rising Open Interest, recovering funding rates, and a bullish cup and handle pattern. However, confirmation of a move above the critical resistance level of $2.23 is necessary before calling it a definitive breakout. If both funding rates and inflows remain elevated, SUI may be positioning itself for another leg up in the market.
In conclusion, SUI’s recent market activity points towards a growing confidence among traders and investors, with potential for a breakout on the horizon. The combination of positive indicators such as stablecoin inflows, Open Interest growth, and bullish price patterns suggest that SUI may be gearing up for a significant move. However, market participants should await confirmation of a breakout above key resistance levels before assuming a definitive trend reversal.
