marketmovements

Why is the SUI token price up today?

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#MarketSentimentToday Sui, a layer-1 blockchain Network native token ($SUI ) surged nearly 13% today, climbing above $1.08 with a market cap of $4.35 billion. Making Sui token one of the strongest-performing major altcoins in the market.

The rally comes while Bitcoin and most major altcoins continue trading sideways. Many traders are now wondering if the reason why $SUI token price went up today?

Institutional Staking Creates Supply Shock

One of the biggest catalysts behind today’s rally came from institutional accumulation and staking activity. $SUI Group Holdings, a Nasdaq-listed company, moved its entire 108.7 million $SUI holdings from DeFi protocols into direct staking.

That amount represents roughly 2.7% of $SUI ’s circulating supply.

The move significantly reduced the amount of liquid $SUI available on exchanges, tightening available supply while demand increased.

This matters even more because nearly 74% of the total $SUI supply is already staked, meaning only a limited percentage of tokens remain actively tradable in the market.

As fewer tokens become available for selling, buying pressure can push prices higher much faster during periods of rising demand.

Short Liquidations Fuel Price Explosion

Another major driver behind the rally came from derivatives liquidations. Following the staking news, the $SUI market recorded approximately $3.13 million in liquidations over the past 24 hours.

Notably, nearly 90% of those liquidations around $2.91 million came from short traders betting against the rally.

When short positions get liquidated, exchanges automatically buy back assets to close those trades, creating additional upward buying pressure.

At the same time, trading volume surged nearly 90% to around $808 million. This sharp increase in trading activity shows traders are aggressively entering the market again.

#MarketMovements

This indicator is considered a mirror of the market's liquidity and speculation nature, as it compares the trading volume based on leverage (Futures) with the actual direct trading volume (Spot).

The market is currently in a state of structural balance, and the price rebound we are seeing towards the 80,000 level is not accompanied by dangerous inflation in leverage, confirming that the current buying power has a solid foundation and that the "speculative bubble" that existed in the middle of last year has been completely deflated.

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