SUI fell by 1% on Tuesday, extending its losses by 5% from Monday, which broke below $1.50.
Derivatives data indicates a loss of risk appetite among traders as long liquidation over 24 hours exceeds $3 million.
On-chain data suggests that demand on the network is declining as the total value locked (TVL) and the market value of stablecoins decrease.
Sui ($SUI ) remains under significant bearish pressure, extending its losses by 1% at the time of publication on Tuesday for the third consecutive day. The decentralized finance (DeFi) cryptocurrency is losing value as demand for the chain diminishes amid a general market sentiment of risk aversion and derivatives data indicating a declining risk appetite. Technical forecasts for SUI point to $1.39 as the next key support level.
Declining demand across the chain and retail metric
CoinGlass data shows that retail interest in $SUI has decreased significantly, with open interest in futures (OI) dropping by nearly 10% over the past 24 hours to $679.70 million. Typically, a decrease in OI reflects a risk-off sentiment among traders, as the nominal value of all active positions, whether long or short, declines.
At the same time, the liquidation of long positions in the past 24 hours reached $3.14 million, surpassing the liquidation of short positions amounting to $89,210, indicating a greater destruction of positions aligned with the upward trend. This has reduced the long-to-short ratio to 0.9238, suggesting a larger number of active short positions.
SUI derivatives data. Source: CoinGlass.
On the network side, the Sui blockchain is experiencing a decline in demand, with the total value locked (TVL) decreasing by 3.30% over the past 24 hours to $869.08 million. This indicates that users are converting their digital assets to cash.
Similarly, liquidity in Sui is also under pressure, with the market cap of stablecoins declining by 25.72% over the past week.
SUI DeFi metrics. Source: DeFiLlama
Technical outlook: Will Sui continue its downward trend below $1.50?
Sui continues to drop below the $1.50 level after a 5% loss on Monday, which saw a bearish breakout of a descending triangle pattern on the 4-hour chart. At the time of writing, SUI is trading below pivot point S1 at $1.47, with a path of least resistance directed towards pivot point S2 at $1.3924.
Momentum indicators on the 4-hour chart support the bearish hypothesis amid increasing selling pressure. The relative strength index (RSI) at 28 is trending towards the oversold region, reflecting significant bearish pressure. If RSI stabilizes below 30, SUI may experience a prolonged downward trend.
The moving average convergence divergence (MACD) indicator extends into negative territory, reinforcing the increase in bearish momentum.
SUI/USDT price chart for a 4-hour period.
If $SUI rises above $1.50, it may target the 50-period exponential moving average (EMA) at $1.57.