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AMB Crypto 2025-05-16 09:00:50

SUI DEX activity surges 89% – But why are traders still hesitant?

SUI DEX volume hit $90.79B, with social sentiment and dominance rising sharply. Liquidation clusters above $3.7 and channel support hint at possible bullish continuation. Sui’s [SUI] decentralized exchange (DEX) activity has experienced significant growth, with total volume reaching $90.79 billion as of the 15th of May. This marked an 89.88% year-to-date increase in DEX trading volume. Notably, Cetus Protocol alone accounted for 58.83% of the total, positioning it as the dominant player in the ecosystem. This uptick reflected intensified on-chain participation, particularly on native platforms. At press time, SUI traded at $3.72 after a 5.36% daily drop, yet ecosystem usage continues to build. Retail buzz grows, but traders hesitate Social dominance for SUI has climbed to 1.24%, while Weighted Sentiment has risen to 2.30, according to Santiment data. These spikes suggest increasing interest and discussion surrounding SUI across social channels. Historically, such moves often precede or accompany speculative rallies, especially when aligned with network activity growth. Source: Santiment SUI’s derivatives metrics showed a notable cooldown. Derivatives volume dropped 19.65% to $3.57 billion, while Open Interest fell 12.18% to $1.61 billion. This decline signaled reduced trader participation and lower speculative positioning. In many cases, this reflects uncertainty or profit-taking following price volatility. Can flat Funding Rates ignite a squeeze? Binance’s liquidation map revealed a dense cluster of short liquidations between $3.75 and $4.00. SUI’s press time price at $3.709 sat just below this region, indicating that a modest upward push could trigger forced short closures. Cumulative short liquidation leverage exceeded 25 million USDT in this zone, exposing a vulnerability to sudden price spikes. Source: Coinglass Despite the price swings, Funding Rates remain muted. At the time of writing, the aggregated Funding Rate stood at 0.01%. This flat structure reflected a balanced market, with no extreme bullish or bearish bias among leveraged traders. Such neutral rates reduce the likelihood of sudden reversals triggered by over-leveraged positions. Is SUI gearing up for a breakout within its channel? SUI was trading inside a clear ascending channel at press time, with support near $3.53 and resistance around $4.58. The price recently touched $3.72, hovering near the middle of the channel. The 9 EMA sat at $3.95, while the 21 EMA tracked slightly higher at $3.98. Meanwhile, MACD lines showed weakening momentum, with the signal line at -0.0267 and MACD at -0.0385. While the structure remained intact, bulls must defend the mid-zone to maintain trend continuation. Source: TradingView SUI’s rising DEX usage, elevated social sentiment, and short-side liquidation potential create favorable conditions for bullish continuation. However, weakening derivatives activity and flat Funding Rates highlight a cautious mood among traders. Whether SUI breaks above $3.90 and reclaims upper channel levels will depend on renewed demand and sustained ecosystem engagement.

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