Sui will trigger $96 million liquidation if price hits this level

SUI recently increased by 12% in the past 24 hours, bringing a bit of confidence to investors. However, this price increase could harm traders, as it may trigger large liquidations if this altcoin reaches an important price level.

The recent price increase is a double-edged sword with potential consequences for short sellers.

SUI Traders Face Losses

According to liquidation data, SUI may face a liquidation risk of $96 million if its price reaches $3.48. This will primarily affect short sellers, who have bet on the price decreasing.

If SUI rises to this important level, short contracts will be liquidated, forcing traders to close their positions and pushing the price even higher.

This potential liquidation event highlights the volatility of SUI and the associated risks for traders betting against it. With the price increase, short sellers may be forced to exit their positions, inadvertently driving the upward trend.

As a result, this scenario could exacerbate the price increase, putting both short sellers and long-term buyers in a position dependent on unpredictable price fluctuations.

Despite the recent 12% increase, the Chaikin Money Flow (CMF) shows a decline, signaling a lack of investment capital flow. The CMF is currently showing negative momentum, indicating that investors are not fully supporting SUI's price increase.

Recent profits seem to be driven more by short position closures than by widespread buying.

If the outflow continues, SUI's price may face additional pressure. The lack of strong buying support, along with the CMF decline, suggests that the recent price increase may not be sustainable.

If these outflows continue, they could lead to a price reversal, reducing the optimism brought by recent profits.

SUI Price Attempts to Surge

At the time of writing, SUI is trading at $3.27, having increased 12% in the past 24 hours. The price is currently facing resistance at $3.33, which has proven to be a significant barrier in the past.

With the ongoing outflow, it seems SUI will find it difficult to break through this resistance level in the short term.

If SUI fails to break through the $3.33 resistance, it may return to lower levels, such as $3.13 or $2.91, erasing recent gains. This would mark the continuation of the accumulation phase, as the lack of strong buying pressure prevents upward movement.

However, the Parabolic SAR indicator is approaching an important level, with the potential for reversal under certain candles that may signal the beginning of an upward trend.

If SUI successfully breaks through $3.33, the price could rise to $3.48. Surpassing this level would neutralize the bearish outlook, trigger a wave of short position liquidations, and push the price even higher.