SUI’s rise to above $5 was due to a 20% price increase in the last seven days.
According to Coinglass, SUI’s Open Interest (OI) reached a new peak of $1.47 billion at the time of writing.
OI, a key metric in the derivatives market, represents the total value of outstanding contracts. An uptick in OI indicates increased market liquidity, signaling growing investor interest.
Conversely, a decline in OI suggests money is leaving the market, with more positions being closed than opened.
In price action, a rising OI alongside a price increase is seen as a bullish signal, while a falling OI can indicate weakening momentum.
If SUI’s OI continues to climb amid strong buying pressure, it could signal further price gains.
SUI Open Interest | Credit: Coinglass
SUI Breaks Out of Bearish Pattern
Between Dec. 24 and 31, SUI formed a descending triangle pattern, causing the price to fall by 14%. A descending triangle is a bearish pattern that appears when a token forms a series of lower highs and a flat, descending support level.
Typically, this technical pattern indicates an extended downtrend once the price breaks below the support line. However, that was not the situation with SUI.
Instead of breaking below support, the SUI price rally resulted from the breakout above the lower highs. This validated the bullish thesis and drove SUI’s price to $5.35.
SUI Daily Chart | Credit: TradingView
Short-Term Outlook
Meanwhile, the 4-hour chart shows that the token briefly declined to $5.06, but the altcoin has quickly bounced back.
The green part of the Supertrend Indicator, designed to identify an asset’s price direction, remains below SUI’s price, trading at $5.11.
With the indicator, one can spot price levels to buy or sell based on trend direction. In most cases, when the red segment of the Supertrend flashes above a crypto’s price, it indicates resistance and a possible sell signal.
However, in this case, it is the other way around. If the trend remains the same, SUI’s price could jump quickly to $5.37.
SUI 4-Hour Chart | Source: TradingView
In addition, an increase in buying pressure with another hike in SUI’s Open Interest might extend the rally above $6. However, if profit-taking outweighs the buying volume, this thesis might not come to pass. In the event that this occurs, the token might slide to $4.23 at the 0.236 Fibonacci retracement level.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
