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Sui (SUI) price is generating waves with its growing Total Value Locked (TVL), which now stands at $630.58 Million.
This increase in TVL is positively impacting SUI, making it a notable contender in the market. Last month, it recovered from $360 Million. The rise over time reflects increased demand and the changing dynamics of market participation.
However, despite growing TVL, SUI is in the bears’ grip. SUI made headlines with its recent price drop in the past 2 weeks, bringing it down below $1. Intraday, it slipped 7.36%, which got deflected by a bearish cross between the 20-day and 50-day EMA bands.
A Glance at SUI Price and Derivatives
The SUI crypto’s derivatives market has displayed notable activity for the current market trend, with open interest rising by 5.5% over the past 24 hours. This increase led to an amount of $140.08 Million OI’s. This showed increased engagement in the derivatives segment among traders.
In terms of liquidations, the long-short ratio was at 0.9451. This signified that the longs totaling $1.06 Million were liquidated over the last 24 hours, compared to $210.69K in shorts. This highlighted the current dominance of bears in the market. More long positions were closed owing to the price action.
Additionally, derivatives volume experienced a significant surge, advancing by 65%. This surge led to a total traded value of $783.77 Million. It highlighted the increased demand for SUI token in the derivatives market.
Why SUI Failed to go Higher
From the last quarter of 2023 to the first quarter of 2024, the price displayed magnificent gains of 490%. The run began from $0.3694 to $2.1851.
However, since the end of March, and while entering the second quarter of 2024, SUI violated the uptrend significantly. The lower-low spree saw gains plummet by 80%, amid profit-booking.
Long term, a sharp decline from a swing high of $2.1816 to its current traded price of $0.7669 spanned 161 days.
Although the token resurged from lower levels with the liquidity grab on August 5th, it struggled to maintain upward momentum. The price is in the final month of the third quarter of 2024, and yet the price stayed in bear grasp.
This price action underscores the uncertainty and selling pressure within the market.
Despite the bearish scenario, there remains the probability of a bounce back. If SUI can break above the $1.0 level and sustains, it could trigger some bullish candles.
However, the market remains cautious, and SUI needed to overcome key resistance levels or Change of Character (CHoCH) above $1.0 to confirm a substantial recovery.
Do Technical Tools Show Any Hope for Recovery?
The SUI crypto has shown notable weakness in its recent price action. It has plunged beneath the 200-day EMA on the daily chart.
Moreover, the MACD and signal lines continue to trade in negative territory. The RSI has dropped below the critical 50 level at 43.89.
SUI may find support at the $0.3500 and $0.5000 levels. However, resistance at the $1.1800 and $1.425 levels is likely to be encountered.