SUI 20% Rally Pushes Open Interest Beyond $1B—Further Gains Expected

• SUI price briefly hit a new all-time high following a 20% seven-day increase.
• The altcoin’s Open Interest climbed to $1.47 billion amid the price surge.
• Despite a slight decline, SUI looks ready to rally toward another peak.

On Jan. 6, SUI hit a new all-time high of $5.35.

However, the token quickly retraced to $5.12, raising speculation about whether SUI will continue its ascent.

SUI Soars to New ATH, Open Interest Climbs

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 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.

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.

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.