As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous trends and cycles. The recent surge in SUI‘s liquidity levels is reminiscent of the dot-com boom of the late 90s, albeit in a digital asset context.
The cryptocurrency project SUI has caught the attention of investors and traders due to a significant increase in liquidity, which coincides with positive market trends. This surge in capital suggests growing faith in the crypto asset, leading to increased trading activity and its availability on multiple exchanges. This expansion signifies the market’s optimism about SUI’s future success.
Liquidity Levels Rise For SUI
According to a fresh finding from Alphractal, a cutting-edge investment data analysis tool, it appears that the influx of SUI (Symbolic Universe Infrastructure) liquidity is on the rise. This surge can be attributed to the increasing curiosity among investors regarding the blockchain’s impressive scalability and development prospects.
Data from the investment platform shows that SUI has been mustering major liquidity over the past three months, signaling the possibility of more long liquidations. Should the price of the digital asset drop below the $1.6 level, Alphractal has warned about the liquidation of numerous long positions.
Despite the primary liquidation point over the past month being at the $2.2 mark, a large number of open positions – predominantly long positions carried over from the previous month – were also liquidated.
Over the past week, there’s been a consistent pattern where more short positions (positions where traders borrow securities to sell, expecting to buy them back later at a lower price) have accumulated, while many long positions (positions where traders buy securities with the expectation of selling them later at a higher price) have been closed out.
In the report, Alphractal noted that the Open Interest (OI) for SUI has moved towards a downtrend, dropping to approximately $370 million. This decrease could signal a change in trader sentiment, suggesting they might be altering their positions because of uncertainties and anticipated market turbulence.
Despite the ongoing negative funding rate, it’s worth noting that the Long-Short Ratio on prominent crypto exchanges like Binance, OKX, and Bybit is trending upward again in the short term. Simultaneously, daily liquidations exceeding $5 million indicate a market cap and open interest level of nearly 7%.
The Asset’s Upward Movement Set To Continue
As an analyst, I’ve observed a notable upturn in the broader cryptocurrency market, which has significantly boosted the fortunes of SUI. Following a dip to around $1.7, this token has been moving steadily upward, generating substantial interest and investment from crypto enthusiasts.
Currently, the digital asset stands at $2.31, representing an approximately 18% surge in just one day. Yet, market expert and trader Jonathan Carter’s optimistic outlook suggests that this rally may not have reached its peak yet, forecasting a potential rise to $2.35.
Based on the analyst’s assessment, on a 12-hour time scale, the token is forming a symmetrical triangle. This triangle has a robust support level situated between its base and the 100 Moving Average (MA), hinting at an impending rebound. If the asset manages to break free from this pattern, Carter predicts short-term movements towards potential price points of $1.97, $2.11, and $2.35.
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2024-11-07 08:11