Alarm Bells for SUI Coin: Giant Whale in Danger!

A whale’s leveraged position on $SUI is under threat if the asset falls to $4.56. The whale has already received a warning that it has borrowed more than its limit and is close to liquidation. The whale has deposited sSUI and SUI into two separate pools to borrow $USDC and wUSDT. As of January 8, SUI has been hovering around $4.60, with occasional dips lower. The crypto market has been moving sideways as #Bitcoin ($BTC ) and #Ethereum (ETH) have slipped into a lower range, making other coins and tokens more volatile.

SUI recently hit an all-time high of $5.33, prompting whales to increase their positions. The chain has been one of the most active over the past year and is attracting a flood of new traders. SUI is set to rise along with the rest of the market in the last quarter of 2024. As a result of SUI’s expansion, the L1 chain has a thriving DeFi sector. The whale’s position is based on a loan from SUI Lend, which is based on continued positive price performance.

The whale deposited 4.1 million SUI, or $19.3 million, to borrow $14.4 million worth of stablecoins. If the loan is liquidated, SUILend will become the custodian of the loan, while the whale will hold the stablecoins. The loan is not like a centralized long position, as the whale will not face a total loss. Also, since the tokens are limited to the DeFi application, there is less price pressure.

SUI has slowed its rise, and open interest has also decreased from its recent peak of over $800 million to $676 million. The asset is still expected to expand, as reflected by the 70% long position. However, some believe that SUI may continue to narrow as these long positions are attacked for liquidation.