- SUI’s price soared to new highs on the charts, aided by robust DEX volumes
- The state of demand is worth assessing here, especially in the context of the potential for profit-taking
As a seasoned researcher with years of experience in the cryptocurrency market, I find myself intrigued by the recent performance of SUI. The surge in DEX volumes and the subsequent price soar to new highs is certainly noteworthy. However, the state of demand is worth assessing here, especially in the context of the potential for profit-taking.
According to recent reports, the Sui network has experienced a surge in on-chain activities, resulting in all-time high volumes for its decentralized exchange (DEX). Moreover, the price of Sui has shown significant volatility this week, reaching a new all-time high (ATH) on the charts.
Based on the latest figures from its official source, the Sui network’s total Decentralized Exchange (DEX) volume reached an unprecedented $35 billion mark. This surge was fueled by a record-breaking daily volume of $466 million, setting a new high for the network in terms of daily volume as well.
The surge in DEX demand suggested that there was significant demand for the SUI cryptocurrency. This may have contributed to its bullish performance over the last 2 days.
Starting in November and through the first week of December, SUI followed a parabolic trajectory. However, this week seemed to indicate a period of profit-taking and retracement. But an unexpected surge in demand midweek sparked a rally, propelling it to a new all-time high. Remarkably, the altcoin’s price soared to $4.91, raising optimism that it might surpass the $5 mark soon.
Although there had been an increase in prices recently, there were still predictions of a decline due to the bearish divergence seen between the price and the RSI. However, it’s important to note that this recent rise was primarily fueled by the resurgence of demand for the spot market.
Assessing SUI spot and derivatives demand
On Wednesday, there was approximately 13.67 million dollars’ worth of immediate investments, and around 5.19 million dollars’ worth over the past day. These recent inflows are notably greater than the inflows observed during the first week of December.
Over the past period, an increase in spot transactions and a drive towards a new all-time high (ATH) has been fueled by a significant $5.15 billion increase in token volume, as reported by DeFiLlama. This volume surge was one of the second largest ever recorded within the Sui network’s history.
Even though these observations have been made, it’s worth noting that Suisui’s Total Value Locked (TVL) has persisted in falling. At the moment of this report, the TVL stood at $1.64 billion – A potential sign that some investors might be withdrawing their liquidity over the past days or weeks.
It appears that the decrease in Total Value Locked (TVL) corresponds with a decreasing Relative Strength Index (RSI), suggesting a significant amount of profit-taking might be occurring. This scenario could potentially elevate the risk of forced liquidations, particularly for short traders who anticipate a price reversal.
To conclude, the value of Short Unrealized Profit (SUI) liquidations reached a high of $5.5 million over the past day due to rising prices. This significant increase should prompt traders to exercise caution, particularly those considering large, margin-heavy trades.
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2024-12-13 12:39