Massive $143M Short Liquidations Above SUI Create Squeeze Risk
SUI faces a pronounced short-liquidation stack that could fuel an upside squeeze. Across exchanges roughly $143.9M in short positions would be liquidated if SUI rallies toward $1.74, while about $25.7M in longs would liquidate on a fall to $0.72 — an almost 6:1 asymmetry favoring forced buying. Binance shows $16.18M in shorts vulnerable up to $1.25 and $11.87M in longs down to $0.73; shorts concentrate between $1.15–$1.57 with larger clusters at $1.61, $2.22, $4.30 and $6.70. Technicals align with multi-month support: weekly price sits near a high-volume node and oversold momentum, compressing price against the Weekly Hypertrend. Analysts highlight $0.50–$0.80 as an accumulation zone and warn of a liquidity sweep before reversal; a break above key resistance could trigger rapid short covering and amplified volatility. CoinGecko shows SUI trading near $0.962 with $583M 24h volume. While the liquidation skew does not guarantee direction, the combination of heavy short interest overhead and structural support increases the probability of a short squeeze and near-term volatility expansion—traders should watch resistance levels around $1.00–$1.25 and clustered short zones for squeeze triggers.
Bullish
The news points to an asymmetric liquidation profile that favors upside pressure: $143.9M of shorts stacked above current SUI versus only $25.7M of longs below. Historically, large concentrated short clusters above price can produce rapid short-covering rallies when price tests resistance (examples: SOL and LUNA episodes where concentrated leverage produced sharp squeezes). Technical context strengthens the bullish case — price sits at multi-month support, momentum is oversold, and a high-volume node may absorb selling. Together these factors raise the probability of a squeeze-driven rally and increased short-term volatility. Short-term impact: heightened volatility and potential rapid upward spikes if SUI breaches resistance bands ($1.00–$1.25) that trigger liquidations. Traders should monitor short clusters and liquidity levels, manage leverage, and use stop-losses around the noted support. Long-term impact: if a squeeze unfolds and leads to sustained higher price discovery, it could attract longer-term accumulation, but absent fundamental catalysts the move may be corrective and followed by reversion. Therefore the near-term outlook is bullish on a technical/liquidation basis, while longer-term direction depends on broader market sentiment and on-chain fundamentals.