SUI Faces Sharp Volatility as 25x Leverage Shorts and Breakdown Risks Threaten Key $3 Level

Sui Network (SUI) is experiencing heightened volatility driven by large-scale leveraged short positions, particularly 25x shorts accumulating on the HyperLiquid exchange. After previously reaching a four-month high of $4.29, SUI saw a significant retracement, losing over 14% and slipping to the critical $3.00 support zone. Recovery has been sluggish, with the altcoin trading between $3.08 and $3.15. Notably, institutional players like Abraxas Capital have generated over $55 million in floating profit from shorts on SUI, BTC, ETH, SOL, and HYPE, reflecting strong bearish sentiment across multiple cryptocurrencies. Technical analysis points to a descending triangle and a possible Head & Shoulders pattern, with the $3.10 baseline key for trend direction. Failure to hold $3 support could trigger a steep decline towards $2.00 or even $1.38–$1.50. In contrast, a bounce from current levels may drive recovery to $3.90 or a retest of $5.36 resistance. MACD and other indicators show lingering bullish momentum but increasing weakness. The liquidation map highlights $13.78 million in shorts at risk of being squeezed if SUI rises above $3.39, while long positions clustered between $2.70–$2.95 are vulnerable if bearish trends persist. With most traders positioned for further downside, any sharp move could trigger cascading liquidations, amplifying price swings and creating significant risks and trading opportunities for crypto traders. Monitoring the $3.10–$3.00 zone remains crucial for market participants.