Sui surges 30% on staking supply squeeze and short liquidations; can SUI reclaim $1.50?

Published: 2026-05-12 12:27:00 |

Sui (SUI) has rallied more than 30% in the past week, jumping from below $0.95 to highs near $1.40, then consolidating around $1.26 (May 12, 2026). Traders are now focused on whether SUI can reclaim the $1.50 resistance zone after confirming a daily breakout above the $1.00 pivot. A major driver is a supply squeeze tied to SUI Group Holdings, a Nasdaq-listed company. It staked 108.7 million SUI, removing about 2.7% of circulating supply from active markets. At the same time, sentiment improved around the Sui ecosystem. Fundamental momentum also strengthened. Mysten Labs said it plans to launch confidential transactions and fee-free stablecoin transfers on Sui later this year, supporting longer-term adoption expectations. Derivatives amplified the move. CoinGlass data showed a rise in short liquidations after SUI broke above $1.00, indicating short covering and stronger spot demand. The technical picture remains constructive: MACD is still bullish, and RSI briefly topped above 73 before cooling. Key levels to watch for SUI: resistance $1.50; support near $1.20; pivot around $1.00. If SUI fails to hold above roughly $1.20, traders may see profit-taking and a pullback toward the prior $1.00 breakout area.

Bullish

The news is bullish for SUI because it combines (1) a real supply-tightening event from large-scale staking (about 2.7% of circulating supply removed) with (2) a technical/positioning catalyst that triggered short liquidations after SUI broke above $1.00. That pairing often sustains momentum beyond the first breakout. The planned Mysten Labs upgrades (confidential transactions and fee-free stablecoin transfers) add fundamental tailwinds that can attract additional buyers on dips. Short term, traders should expect volatility around the $1.20 support and $1.50 resistance as the squeeze effect can fade if follow-through demand weakens. Long term, if the announced privacy and stablecoin features progress as scheduled, it can reinforce adoption narratives and support higher price levels for SUI.