- Over $600 million worth of SUI have been withdrawn from protocols as the market turned bearish.
- Technical analysis of the chart suggested a massive plunge back to the $1 region.
In the past 24 hours, Sui [SUI] dropped by 17.77%, bringing its price to $2.43 at press time. This sentiment has been driven by the overall bearish market conditions.
The market reaction remains negative, with massive liquidity outflows and the possibility of further price declines in the coming trading sessions.
Massive outflows—Is $1 near?
There has been a massive liquidity outflow from SUI in the last 24 hours across different protocols on the chain.
This was determined through Total Value Locked (TVL)—which measures a chain’s valuation—with $610 million worth of SUI sold as TVL dropped from $1.991 billion to $1.381 billion.
Source: DeFiLlama
A decline like this indicates that market participants are selling their SUI, likely to take profits or cut losses. In fact, Artemis noted that SUI has seen a surge in transaction count during this phase.
The daily transaction count climbed over 900,000, from its low of 4.3 million to 5.2 million, and with the price decline, confirms that a significant portion of this transaction volume is associated with sell-side pressure on SUI.
Interestingly, AMBCrypto found that daily active addresses between the 2nd of March and press time remained at 1.5 million.
Thus, it is highly likely that this selling action has been driven by retail traders, while long-term holders have maintained their positions.
On the chart, potential levels for SUI’s price movement have surfaced, with three possible targets.
According to SUI’s daily chart, the asset has just breached the bearish ascending trendline pattern and could potentially see a 58% decline, dropping as low as $1.01.
Source: TradingView
This drop is contingent on whether the two support levels below its current press-time price fail to provide a rebound. The first support level lies at $2.18, and the second at $1.67.
If buying orders at these levels remain low, the asset could see continued price declines.
A drop back to the $1 region would erase all the gains SUI has acquired since September.
Sellers dominate as derivatives data signals fall
The bearish sentiment isn’t limited to the spot market and on-chain data—currently, derivative market traders are also selling, as Open Interest takes a massive dip and liquidation data favors short traders (sellers).
OI has dropped 13.17% to $523 million, while liquidation data shows that over $8.24 million worth of long positions on SUI has been forcefully closed—a significant difference from the $508,000 worth of short positions that were liquidated.
This difference in long and short liquidations shows that the market is currently in favor of sellers, and the price will likely continue trending lower until a shift occurs.
