Will Sui Price Recover Above $5 After Hitting ATH This Week?

by

On January 6, 2025, the token of Layer 1 blockchain, Sui, reached a new peak at $5.36. However, following this, there was a substantial drop in its price, coinciding with Bitcoin‘s fall below $96K, reflecting a broader downward trend in the market. A large investor holding a $20 million long position on Sui is approaching liquidation. The question now is whether Sui can regain ground above $5 after this week’s market turbulence and sell-off.

Is Sui Price Set to Cross $5 After Its ATH Milestone?

On January 6, 2025, SUI price hit a new peak of $5.35, but then dropped by 14.04%. Currently, it’s trading at $4.56, representing an 8% decline in the last 24 hours. The token has demonstrated resilience by overcoming the $4.80 hurdle, establishing a solid foundation that might stimulate additional growth.

If SUI surpasses the $5 barrier, it might invite another look at $5.35 and potentially push towards $6. Yet, persistent bearish trends could cause the price to reassess the $4.50 support or even fall as low as $4 if market forces remain strong.

In simpler terms, the drop in the price of cryptocurrencies, including SUI, is happening as Bitcoin falls below $96,000, leading to a sense of caution. Whether or not SUI can continue to rise and break through important resistance points will determine its next moves.

A $20M SUI Position Risks Liquidation

A significant investor in SUI could potentially have their holdings seized as market volatility increases. It’s said that this investor staked 4.1 million SUI, worth approximately $19.3 million, and 100,000 sSUI, valued at around $470,000, within the platform Suilend. Later, the investor took out a loan of about $14.4 million in stablecoins.

Based on current market information, if the price of $SUI drops to $4.56, a large investor’s $20 million long position could potentially be forced to sell off, as this is the established liquidation point.

A whale’s ~$20M long position on $SUI is on the verge of liquidation!

In the Suiland, this whale contributed a large amount of $SUI worth approximately $19.3 million, along with $100,000 of $sSUI which equates to around $470,000. Additionally, they took out a loan for $14.4 million in stablecoins.

If the price of $SUI drops to $4.56, the position will be liquidated.

— Lookonchain (@lookonchain) January 8, 2025

SUI Price Network’s growth continues

The cost of Sui is rising because the decentralized finance (DeFi) system within the Sui Network has achieved a new Total Value Locked (TVL) record of $1.85 billion. This achievement underscores growing interest and usage across numerous decentralized applications (dApps). Important collaborations with financial heavyweights, such as VanEck, Grayscale, and Franklin Templeton, have contributed to the network’s increased liquidity and token usefulness.

1) These partnerships play a crucial role in increasing the acceptance of the first-layer token across the larger cryptocurrency market. As Sui Network expands, it solidifies its importance within the crypto and decentralized finance sphere.

The future direction of SUI’s price hinges on breaking through significant hurdles at around $5, while resisting any additional bearish trends. Its robust network infrastructure and strategic alliances provide a solid basis for long-term prospects, even amid current market turbulence. The upcoming weeks will play a crucial role in determining whether SUI can maintain its upward momentum.

Read More

2025-01-08 20:50