SUI Price Weakens as Futures Traders Exit After Rally Fails

Key Insights

• SUI failed to hold above $1.32 resistance after Basecamp optimism faded, pushing traders to reduce leveraged futures positions rapidly during Wednesday trading.

• Open interest dropped from nearly $80 million to $68.45 million as funding rates turned negative, signaling weaker bullish conviction across derivatives markets.

• Traders now monitor support near $1.05 while buyers attempt rebuilding momentum for another move toward the important $1.50 resistance in coming sessions.

SUI slipped back toward lower support levels after failing to maintain momentum above the important $1.30 resistance zone. The token had rallied sharply during the past several sessions, supported by stronger trading activity and optimism around the recent SUI Basecamp event in Miami. However, buyers quickly lost control after the rally stalled near the upper resistance range.

The latest price action showed strong rejection near the $1.32 level, where sellers regained control shortly after the breakout attempt. SUI also failed to move above the 200 day moving average, which continues acting as a major technical barrier. Consequently, the rejection weakened the broader recovery structure that had formed earlier this month.

Liquidity Signals Turn Lower

Market indicators also reflected growing weakness across the network. The Chaikin Money Flow indicator dropped sharply after rising during the breakout phase, suggesting liquidity has started leaving the market again. Besides, traders now view the $1 level as the most important short-term support area as selling pressure gradually increases.

Futures market activity also pointed to fading bullish conviction following the failed breakout. Open interest on SUI futures climbed close to $80 million during the rally before falling back near $68.45 million as traders reduced leveraged positions. Additionally, the aggregate funding rate slipped back into negative territory near negative 0.0022%.

Bearish Pressure Builds

The decline in both open interest and funding rates suggested leveraged bulls started exiting positions after the recent rejection. Significantly, such moves often indicate growing long liquidation pressure as traders close positions to limit losses. The shift in derivatives activity also showed that confidence weakened after the market failed to sustain higher levels.

Source: TradingView

The muted reaction following the Miami conference also surprised parts of the market that expected stronger follow-through buying across the SUI ecosystem. Moreover, traders appeared more focused on broader market weakness as several digital assets lost momentum during the period. The fading rally after the event reinforced concerns that demand may not support a breakout without stronger volume across spot and futures markets.

Support Levels Stay in Focus

SUI now trades in a critical range as investors monitor whether buyers can defend support near $1.05. A stronger recovery above the $1.32 resistance zone could revive bullish momentum and expose the next upside targets near $1.50 and $1.80. However, continued weakness below resistance may increase the risk of another decline toward the $0.90 region. Volumes also remained unstable across exchanges during the decline.