TLDR
- SUI recorded $6.1 million in stablecoin inflows, the highest among all blockchains
- Open interest surged by 30.64% to $785.35 million, suggesting aggressive positioning
- SUI price increased 12.82% to $2.16, forming a cup and handle pattern
- A bullish falling wedge pattern suggests a potential target of $5.30 (120% gain)
- Rising fundamentals include DeFi volume ranking 6th across all assets and 2.5 million active users
SUI has captured market attention this week with a significant price increase of 12.82% in the last 24 hours, trading at $2.16 as of writing. The cryptocurrency recorded the highest stablecoin inflows among all blockchains, with a net increase of $6.1 million.
This influx of stablecoins occurred while other major chains like Ethereum, Solana, and BNB Chain experienced outflows. Such movement suggests potential capital rotation toward SUI.
Stablecoin inflows often act as ready capital that can be deployed into native assets. This liquidity surge may reflect growing investor confidence in SUI’s near-term prospects.
Technical Indicators Point to Potential Breakout
On the technical side, SUI has formed a classic cup and handle pattern on the daily chart. This setup is commonly associated with bullish continuation. The handle portion appears to be forming within a descending wedge, with a key breakout point at $2.23.
Buyers have yet to secure a strong candle close above this resistance level. If momentum continues and price breaks through this barrier, the next target sits at $2.80.
Some analysts have identified an even more bullish scenario. The falling wedge pattern could potentially target $5.30, representing a 120% gain from current prices.
The Relative Strength Index (RSI) currently reads 48.23, just below the neutral 50 level. This indicates SUI is neither overbought nor oversold and has room to rise. A cross above 50 could signal growing buying strength.
Derivatives Market Shows Growing Interest
Open interest on SUI derivatives surged by 30.64%, bringing the total to $785.35 million. This sharp increase highlights aggressive positioning as traders prepare for potential price volatility.
According to Coinalyze, open interest in SUI perpetual contracts rose 11.54% to $321.5 million as of April 9. Bybit and Binance dominated the market, contributing the bulk of long/short positions.
Unlike spot inflows, open interest reflects speculative intent, with traders either hedging or leveraging directional bets. When combined with rising stablecoin inflows, this typically leans bullish.
The synchronized jump in both metrics suggests traders expect a decisive move from SUI in the coming sessions. Perpetual contracts account for most of the open interest, indicating a short-term focus that could lead to price volatility.
Liquidations Reset Leverage as Sentiment Turns Positive
Over the last 24 hours, SUI saw $860,600 in long liquidations, compared to just $269,300 in shorts. This imbalance suggests overleveraged bulls were flushed out, especially on major exchanges like Binance and OKX.
Liquidation events often act as reset buttons, clearing excessive leverage and setting the stage for a more sustainable move. If bullish momentum returns post-liquidations, it could support a healthier price recovery.
Meanwhile, SUI’s OI-weighted funding rate turned slightly positive at 0.0087% on April 10. This indicates traders have been paying to hold long positions, reinforcing bullish sentiment despite recent volatility.
Funding rate recovery after a liquidation sweep often reflects renewed confidence among market participants. If both funding and inflows remain elevated, SUI may position itself for another leg up.
Growing Fundamentals Support Price Action
Beyond technical factors, SUI’s fundamentals have been strengthening. Recently, DeFi volume for SUI ranked 6th for all assets in the last month, indicating increasing interest and adoption.
SUI’s partnership with Franklin Templeton and Canary’s recent ETF filing suggest growing institutional interest. The network has seen 2.5 million active users in the past month, demonstrating strong network activity.
These developments position SUI as a major player in the DeFi space, potentially attracting more institutional investors and users to the platform.
For now, the market waits to see if SUI can break through the critical resistance level at $2.23. While the setup appears constructive with multiple bullish indicators aligning, confirmation of a breakout is key before any definitive trend can be established.
At time of writing, SUI trades at $2.16, up 12.82% over the last 24 hours, with traders closely watching for a potential breakout above the $2.23 resistance level.
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