Will SUI Break $4.18 Resistance and Explode Higher?

by

<a href="https://jpyxx.com/sui-usd/">SUI</a>: Will ‘cup and handle’ setup help coin break $4.18 resistance?

  • Open Interest jumped 31.3% as funding flipped positive, showing strong long trader conviction.
  • Short liquidations worth $1.64M reflected seller exhaustion near the $4.18 breakout zone.

On May 22, 2025, SUI saw a remarkable achievement in its blockchain history as the total value locked (TVL) reached an all-time high of $2.2 billion.

This shows a remarkable 222% growth compared to the previous year, emphasizing a swift growth in Decentralized Finance (DeFi) activities within the system.

The increase underscores the rising faith investors have in SUI’s protocols and their continuous interest. Currently, a SUI token is valued at $4.08, representing a 6.20% rise over the past day.

SUI derivatives market activity shows aggressive positioning

The growing enthusiasm among traders towards SUI’s derivative products is evident as Open Interest (OI) surged by 31.30%, reaching a total of $1.76 billion. This significant uptick in open contracts suggests a new influx of funds pouring into the market.

To clarify, the reversal of the Volume-Weighted Funding Rate to 0.011% suggests a change in market dynamics, with long traders gaining more influence. This positive funding rate signifies that long traders are now prepared to pay extra to maintain their positions, indicating bullish sentiment is growing stronger.

Consequently, the increase in Options Instrument (OI) and investment suggests a robust speculative interest, which may intensify market fluctuations during the upcoming significant price shift.

Price levels to watch: Can bulls confirm the cup-and-handle breakout?

Currently, as I type this, the price of SUI is getting close to a significant resistance around $4.18, which coincides with the potential completion of a forming cup-and-handle chart pattern.

As a researcher, I’ve noticed a notable surge recently that indicates increasing optimism among investors. However, for it to be considered a confirmed bullish trend, we need to witness a strong breakout accompanied by substantial trading volume. If we fail to surpass this critical level, there might be a temporary reversal, with the current pattern still in development.

But should bulls successfully transform this resistance level into a platform for support, it could lead to a further upward trend.

Short liquidations spike as bears get squeezed

As a crypto investor, I’ve witnessed firsthand how the recent surge of short liquidations has significantly boosted the momentum of SUI. In just one trading session, an impressive $1.64 million worth of short positions were eliminated across leading exchanges. Bybit and Binance experienced the most substantial losses in this wave.

The rapid sequence of liquidations implies that the bears underestimated the power of the breakout surge, causing them to be pushed out of their positions. On the other hand, liquidations among the longs were relatively low at approximately $84,720, implying that the upward pressure is still strong and intact.

Consequently, the preponderance of more long than short liquidations suggests a generally optimistic market mood, as traders are abandoning positions that are losing money.

MACD and RSI confirm underlying strength

As a crypto investor, I’m seeing positive signs that reinforce my optimistic outlook. Currently, the Moving Average Convergence Divergence (MACD) is nearly ready for a bullish crossover, implying a potential transition towards increasing bullish price action.

Simultaneously, the Relative Strength Index (RSI) showed a reading of 67.42, indicating robust buyer demand and potential for additional growth before reaching the overbought zone.

These technical indicators, along with the increasing price and rapidly growing Total Value Locked (TVL), lend credence to a prolonged positive market storyline.

Consequently, the momentum and trend indicators seem to be in agreement with the market movement, providing strong evidence that the ongoing rally is robust.

Can SUI sustain this momentum into price discovery?

Boasting over $2.2 billion in TVL (Total Value Locked), increasing Open Interest, and robust momentum signals, SUI appears poised to surpass the resistance at around $4.18.

As the cup-and-handle pattern progresses, it’s drawing optimistic trades, with short sellers exiting their positions indicating a decrease in pessimism. The MACD and RSI indicators suggest potential price increases could continue.

Thus, it seems plausible that SUI could convert $4.18 into a resistance level, potentially sparking an upward trend and initiating a period of possible price exploration.

Read More

2025-05-23 06:43