SUI short positions signal a move above $4

$SUI is one of the most actively traded tokens on derivative markets, ranking sixth based on open interest. Based on accumulated short positions, the token may make a move above $4.

$SUI open interest remains near an all-time high, making the asset the sixth most actively traded after blue chip coins and tokens. $SUI open interest is close to $1B, sitting just behind Hyperliquid (HYPE).

Glassnode puts the open interest at $1.2B, with a wider selection of included markets. The recent expansion of derivative trading may boost $SUI performance in the case of an extended altcoin market.

As of July, $SUI has outperformed BTC on a three-month basis, adding over 31% to its price. $SUI traded near its three-month high, at around $3.91.

$SUI trades close to a three-month high, expecting a potential hike above $4 and a breakout to new highs. | Source: Coingecko

$SUI is one of the few L1 tokens aiming to rival Solana. The recent $SUI expansion follows the overall interest in L1 tokens, a narrative with the biggest strength for the past months.

$SUI short positions signal a move above $4

The peak open interest of $SUI comes with a predominance of long positions, at over 77% of open interest. On Hyperliquid, however, whales are mostly balanced, with 10 whales going long and 11 shorting $SUI.

Due to the predominance of long positions, $SUI is currently bound in a range, as traders attack and liquidate the longs. In the past 24 hours, $SUI saw $2.2M in long liquidations.

However, the token has also accrued over $16M liquidity around the $4.10 level. In the past week, $SUI already touched this price range, liquidating a part of the short position, but traders rebuilt their liquidity, hoping for a downward price move. However, $SUI remains driven by optimism and may attempt to attack the short positions once again.

$SUI short positions are accumulating once again above $4, after traders swept the previous liquidity. | Source: Coinank

For now, the token has not seen a short squeeze, but a breakout can attack that level. $SUI achieved its all-time peak at $5.24 in January, and bulls expected a new record above $6.

$SUI grows on lending expansion

$SUI already carries $2.19B in total value locked, near an all-time high. The value expanded rapidly in July, charting a series of records, riding the general trend of DeFi recovery. $SUI is one of the slower-growing networks due to its inability to be EVM-compatible and its attempt to build an independent ecosystem similar to Solana.

All DeFi protocols expanded their value locked by close to 50%. The recently hacked Cetus DEX restarted on June 8 and expanded its liquidity by 55% in the past month.

Suilend remains the main driver of activity on the chain, as demand for lending spreads to new chains. Suilend held over $738M, expanding its liquidity by 48.79% in the past 30 days. The protocol also grew its value to a new all-time peak.

$SUI currently carries over $977M in stablecoin liquidity, still lagging behind larger L1 chains. Despite this, stablecoin usage on $SUI has been extremely active. Despite the small supply, $SUI caught up with Solana in terms of daily stablecoin transfers.