- On-chain data showed $40 million worth of SUI flowed out of exchanges, signaling possible accumulation.
- SUI’s Open Interest-weighted Funding Rate stood at +0.0066%, reflecting strong buying pressure from traders.
Following a significant 75% upside rally, Sui [SUI] appeared to enter a consolidation phase near the key resistance at $3.70.
This ongoing price correction on the daily chart is garnering notable attention from traders and investors, with some anticipating a breakout, while others expect a potential breakdown.
Bullish on-chain metrics
Data from Coinglass reveals that traders and investors hold differing views on the altcoin.
According to Spot Inflow/Outflow metrics, exchanges across the globe witnessed a significant outflow of $40 million worth of SUI coins over the past three days.
Naturally, such large outflows often signal accumulation as traders move coins to wallets, reducing exchange supply and potential sell pressure.
Of course, during downturns, this behavior can also cushion the downside by limiting sudden dumps.
Source: Coinglass
Meanwhile, SUI’s OI-Weighted Funding Rate stood at +0.0066%, confirming bullish pressure from long-position holders.
Source: CoinGlass
Data further reveals that the Binance SUIUSDT Long/Short ratio stood at 1.33, indicating strong bullish sentiment among traders, which explains the positive Funding Rate.
Additionally, 57% of top SUI traders on Binance hold long positions, while 43% hold short positions.
On top of that, SUI traded near $3.55 at press time, posting a 0.75% gain over the last 24 hours. Trading volume rose by 15% during the same period, signaling renewed interest and stronger market participation.
SUI price action and technical analysis
According to expert technical analysis, the altcoin appears to be in a make-or-break situation, which could either rally or plummet, as it currently depends on market sentiment.
On the daily timeframe, SUI price appears to be consolidating in a tight range between $3.27 and $3.83 for the past week.
Source: TradingView
This pause came after a 75% rally, sparked by a breakout from a descending trendline. Naturally, this setup now leaves the asset at a key decision point.
If SUI closes above $3.90 on the daily chart, it could confirm the breakout and target $5.50—a 35% potential move.
However, failure to breach resistance could invalidate the bullish thesis and lead to a reversal.