SUI Coin Price Surge: Is a Major Crypto Liquidation Event Coming?

The SUI coin price has caught the crypto market’s attention with a sharp 10% rise in just 24 hours, pushing the asset toward a potential breakout from a two-week consolidation pattern. Currently trading near $4.13, the coin is testing a critical support level at $4.12 and looking to breach resistance at $4.35—a move that could have significant implications for leveraged traders.

As momentum builds and volume surges, SUI token’s rally may not only drive up prices but also trigger a wave of short liquidations. If the asset reaches the $4.35 mark, approximately $25 million in short positions could be wiped out, potentially fueling a secondary price surge. But can this bullish setup sustain itself, or is the rally masking deeper risks?

SUI Coin Price Today: Bullish Signals with a Volatile Edge

The SUI price today hovers near $4.13, supported by a strong upward momentum backed by a bullish Relative Strength Index (RSI) reading. Although the RSI isn’t yet in overbought territory, it signals strong potential for continued upside if buyers remain engaged.

Trading volumes back up this optimism. In the past 24 hours alone, SUI saw between $1.8 billion and $2.2 billion in trading volume, reflecting increased investor interest. Platforms like TradingView, CoinGecko, and Coinbase all report a marked spike in activity, aligning with a market cap of roughly $14 billion and over 3.45 billion tokens in circulation.

Read more: Is SUI Integrating with Bitcoin?

SUI Rally Puts Leveraged Positions at Risk of Liquidation

The recent SUI rally puts leveraged positions at risk of liquidation, especially for traders who bet against the coin. If SUI breaks through the $4.35 resistance level, short sellers may face automatic liquidations of their positions, adding sudden buying pressure to the market.

Key facts:

• A move to $4.35 could liquidate $25 million in short contracts
• A previous price level around $3.48 was tied to an even larger potential liquidation of $96 million
• These events often trigger short squeezes, forcing traders to buy back SUI at higher prices

While this process benefits bulls in the short term, it often introduces extreme price volatility, making the rally susceptible to rapid reversals.

How SUI’s Price Jump Could Trigger Major Crypto Liquidations

Understanding the mechanism behind these liquidations is key. When short sellers borrow and sell SUI token anticipating a drop, they expose themselves to forced buybacks if the price rises. Exchanges auto-close these positions when certain thresholds are breached—an event known as forced liquidation.

In SUI’s case:

• Approaching $4.35 acts as a liquidation trigger
• Forced liquidations act as buy orders, amplifying price spikes
• This can attract momentum traders, further increasing volatility

But not all indicators point to organic demand. Some metrics, like Chaikin Money Flow, suggest that recent price increases might be driven more by short covering than genuine investor interest, indicating a fragile foundation for long-term gains.

Read more: Sui Network Got Viral and Everyone Eyes on It: What’s Happened?

SUI Market Volatility: Why This Rally Could End in Liquidations

While the breakout looks promising, failure to hold $4.12 support—or worse, a fall below $3.93—could invalidate the bullish setup. In that case, the price may retreat quickly, catching late buyers off-guard and reintroducing downside volatility.

For traders watching SUI:

• Support to watch: $4.12
• Critical floor: $3.93
• Bullish trigger: $4.35 resistance break
• Liquidation volume: Up to $25M near breakout point
• Risk factor: Rally may be unsustainable without new buyer momentum

In short, the rally may be self-sustaining only if accompanied by broader buying interest—not just short liquidations.

Final Thoughts

SUI’s recent surge has made it one of the most-watched alt coins in the crypto space, especially as it flirts with key technical levels. While the price action suggests room for further growth, much of the momentum is tied to leveraged trading dynamics that can reverse quickly.

If the breakout continues past $4.35, short liquidations could act as a catalyst for a stronger rally. But traders should remain cautious—volatility is high, and the rally could lose steam if it’s not supported by real market demand. Understanding these liquidation mechanics is crucial for anyone involved in the crypto markets, especially when trading trending assets like SUI.

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FAQ

What is the current SUI coin price?

As of now, SUI is trading around $4.13, with critical support at $4.12 and resistance at $4.35.

Why is SUI’s price increasing?

SUI’s price is rising due to strong momentum, increased trading volume, and the potential liquidation of short positions at key resistance levels.

What happens if SUI reaches $4.35?

A move to $4.35 could trigger about $25 million in short liquidations, adding significant buying pressure and potentially pushing the price higher.

Is the SUI rally sustainable?

The rally shows potential, but some indicators suggest limited fresh buying. Without broader demand, it could be driven primarily by short covering.

What are the risks of trading SUI during a rally?

The biggest risks include price volatility, potential reversal if support breaks, and overreliance on liquidation-driven momentum instead of organic growth.