Throughout 2024, SUI has emerged as a standout player among layer-1 platforms, at times outshining Ethereum and Solana [SOL] in certain aspects.
Remarkably, it was among the assets that reached record highs during the market recovery in October, which subsequently led to a pullback in the SUI price, attracting sidelined traders.
Consequently, many traders took long positions around the $1.6 mark, with liquidity steadily accumulating around this critical support level for some time.
Alphractal has pointed out that the substantial liquidity at the $1.6 support level could trigger significant liquidation if the price dips below this threshold.
Is SUI Facing Imminent Liquidation?
Alphractal highlighted the significant liquidity build-up at $2.2 as well, where long positions were opened, only to be wiped out during a recent pullback. Will history repeat itself at $1.6?
Examining the price chart reveals a daily order block (OB) formed back in April, which has proven to be a reliable support zone for SUI in September and October ($1.6, white area).
Moreover, the 50-day EMA (Exponential Moving Average) has served as a crucial dynamic support, preventing sharp declines in late October and November.
In essence, $1.6 has been a critical support level in Q4, attracting significant buying interest and leveraged positions, with a breach potentially leading SUI down to the next support at $1.4.
The stagnant spot market demand for SUI, as indicated by the sideways movement on OBV (on balance volume), suggests that SUI prices are poised to move in either direction post-US election, based on market sentiment.
Varied Market Sentiment
Data from Santiment revealed a sense of caution prevailing in the short-term market. Since October, SUI’s open interest (OI) rates have been declining, mirroring the diminishing market sentiment observed currently amidst the US election anticipation.
Nevertheless, there appears to be a certain level of interest from whales looking to increase their positions despite the overall caution. A positive Retail vs Whale Delta metric indicates a preference for whale long positions over retail.
In essence, there is a slight inclination from whales towards SUI. However, the token’s price stands at a critical juncture, as any break below the $1.6 support level could expose numerous leveraged traders to potential losses.