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Sui is finally stabilizing, and the most recent increase in trading activity is beginning to change its short-term market structure. Even though price action is still relatively constrained, an approximately 37% increase in volume across major exchanges suggests renewed participation.
SUI's potential on market
After months of steadily declining highs and lows, SUI is now trying to establish a base at $0.97. Volatility compression, tighter candles and the price starting to move sideways rather than sharply downward are all indicative of a traditional late-stage downtrend transition. Prior to any significant attempt at a reversal, short-term moving averages are typically flattening.
Zooming out, though, the overall trend remains negative. All significant higher-time-frame moving averages are still below SUI, and the long-term structure has not changed yet. The direction of the trend is not changing, but rather, momentum is declining.
This interpretation is supported by the derivatives and flow data. With spikes like a net change of +672% over a 12-hour period, futures flows exhibit steady net inflows over brief intervals. This suggests that speculative capital is returning to the asset.
Liquidation data, on the other hand, is comparatively balanced, albeit slightly skewed toward short liquidations on shorter time frames, suggesting slight upward pressure. Additionally, the long/short ratio, which ranges roughly between 1.9 and 2.2, leans bullish across exchanges, indicating that more traders are positioning for upside. However, positioning by itself is not a signal because it frequently comes before volatility rather than direction.
Spot flows mixed
However, spot flows are not showing a deterministic dynamic. Longer intervals still show hesitation, with sporadic net outflows, even though short-term inflows exhibit accumulation bursts. This conflicting behavior is more indicative of doubt than conviction.
From a structural perspective, SUI must recover the $1.10-$1.15 range in order to validate any significant change. That level is in line with the moving average confluence and midterm resistance. Until then, this is still an attempt at a recovery within a more general bearish context.
Practically speaking, SUI is no longer in free fall, but it has not yet merited a reversal storyline. A foundation is emerging, bolstered by increased participation and better liquidity. Whether volume translates into persistent buying pressure rather than transient speculation is the only factor that will determine whether that base develops into a breakout.
Dan Burgin
U.Today Editorial Team
