SUI Open Interest Crosses $1B, Price Action Defies Gravity

SUI crypto was on track to complete the week as one of the best performing top cryptocurrencies.

Its bullish renaissance has resulted in multiple noteworthy developments including SUI open interest reclaiming the $1 billion mark.

Open interest peaked at $1.56 billion earlier this year on 19 January. This was the highest level of open interest that it achieved in its history.

However, the subsequent sell pressure that occurred since then, with open interest cooling down to about $500 million at its lowest point in Q1.

Open interest gradually recovered since then but its recovery entered supercharged mode from Wednesday. It has since surged as high as $1.3 billion at the time of observation.

The open interest recovery suggests that SUI open interest could potentially continue rallying to new highs if it maintains the momentum a while longer. However, that might be a tall order considering SUI crypto’s current position.

SUI crypto enters deeply overbought territory

The open interest surge confirmed that the SUI crypto was receiving a lot of attention from investors. This was evident by its price action which rallied by 75% in the last 5 days.

Although the SUI cryptocurrency was on track to become the biggest gainer in the top 50 during the week, its latest rally meant that price was deeply overbought at its $3.72 high.

The overbought conditions suggest that the rally will likely slow down and potentially pave the way for profit-taking. The potential for this outcome was particularly higher in the last 24 hours. This is because negative funding rates registered a big spike in the last 24 hours.

This was the highest spike observed I the last 4 weeks, signaling growing expectations of a pivot.

However, the surging negative funding rates also underscored more short liquidation potential especially as prices pushed higher.

Spot netflows remained positive in the last 24 hours by $26.38 million, meaning demand was still higher than sell pressure.

The positive spot flows underscored the potential for a short squeeze and more short liquidations. Speaking of, liquidations, roughly $14.03 million short positions were liquidated in the last 24 hours while only $5.66 million longs were liquidated.

Network metrics recap

SUI’s latest price surge was also backed by robust network activity. For example, daily DEX volume surged slightly above $782 million on Wednesday, marking its highest daily volume so far in April.

The network had just over $593 million worth of DEX volume in the last 24 hours. This was still a significantly level considering that DEX volume dropped below $100 million at its lowest point in March. Therefore, strong activity within the Sui network ecosystem underpinned the latest market recovery.

While SUI DEX volume was surging, the network’s TVL registered a noteworthy dip contrary to expectations. While the TVL in stablecoin value went up due to token value going up, its value in token count dipped.

The TVL dropped from 608.34 million coins on 21 April to 510.76 million coins in the last 24 hours.

This outcome could potentially signal that some holders unlocked their coins with the intent of securing profits.

Nevertheless, the excitement around Sui this week could be tied to a recent development. The network recently confirmed collaborations that will bring a Sui-Mastercard offering to the market.

The card will reportedly facilitate real-world spending through the Sui network. The development puts Sui on track for long term utility and user growth.

In addition, Grayscale has reportedly launched a SUI trust. This confirmed growing institutional demand for the SUI crypto, and could potentially pave the way for massive liquidity flows from institutional investors.

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