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SUI short liquidation signals potential downside risk at $3.755

I’m noting a $203K short position on SUI was liquidated at $3.755. This move shows buying pressure or a shift against a bearish bet in the recent price action. It’s a reminder that sudden reversals can catch shorts off guard and that liquidity spikes can trigger cascading moves. If you’re watching SUI, the liquidation doesn’t by itself mean a trend reversal, but it signals increased volatility and a potential shift in momentum.
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Analysis

Sui experienced a liquidation of a sizable short position at a specific price point ($3.755), which implies a squeeze or a run higher that forced liquidations on bearish bets. Such events can occur when liquidity pockets or favorable news trigger rapid price moves, producing a temporary mismatch between price and trader expectations.

From a risk perspective, short liquidations can indicate short-term bullish pressure, but they don’t guarantee a sustained up-move. Traders should watch for volume spikes, order book depth changes, and any clear catalysts (news, protocol updates, or macro factors) that could sustain upside beyond the initial squeeze.

In building a view on SUI, consider both the base trend and potential retracements. If price tests resistance levels with strong volume, risk of a pullback rises. Conversely, if support holds and buyers remain active, the next leg up could form.

Recommendation

Respect the volatility. If you’re long, tighten stop losses and monitor for a decisive price breakout or rejection at key levels.

If you’re short, be cautious—the liquidation event suggests risk of short squeezes. Consider reducing exposure or covering into strength unless there’s a clear, sustained bearish signal.

Wait for a clear catalyst and a confirmed trend before adding new risk. Use risk controls like position sizing and predefined risk-reward thresholds to manage potential reversals.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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