A Major Loss on the Crypto Market
A significant whale holding a large amount of Sui [SUI] was liquidated during a broader market correction. The holder had deposited approximately $19.7 million worth of funds into a lending pool on the Suilend platform and used them to borrow stablecoins.
To maintain this position, the SUI price needed to remain above $4.56. A drop below this level triggered liquidation, which nearly happened as the trading price approached this critical threshold.
Whale Liquidation Impacted the Market
A price drop below the key level led to the liquidation of the whale’s position. This event likely put downward pressure on SUI’s price due to a sudden increase in token supply.
On the other hand, this liquidation might have stabilized the market and boosted investor confidence by removing a risky element. This scenario highlights the critical role whales play in the crypto market and how their actions affect liquidity and price stability.
Current Price Action and Future Predictions
SUI’s price has experienced significant movements. Initially trading around $4.52, it surged to $5.36 – a strong resistance level. However, after this peak, the price dropped sharply back to $4.52.
This zone represents a critical upward trendline often perceived as a buying opportunity by traders. However, if the price breaks below this upward trendline, SUI could fall to the $2.84 level.
Traders should monitor these key levels closely, as they may dictate short-term price movements.
On-Chain Metrics: SUI Shows Strength Despite Corrections
SUI achieved a Total Value Locked (TVL) of $2 billion, alongside a 37% week-over-week increase in new accounts. These figures indicate strong user engagement with the network, even as the market faces corrections.
Historical data suggests that positive metrics like an increase in new users can support a coin's price growth, even in bearish market conditions. This trend signals growing confidence in SUI.
NFT Activity on the SUI Blockchain Is Growing
Over the past seven days, the number of new NFTs on the SUI blockchain has risen by 2.64%, while the creation of new coins has decreased by 6.7%. This shows a shift in development toward non-fungible tokens.
The growing popularity of NFTs could stabilize or even boost SUI’s price as users and investors become more engaged in NFT-focused projects. This shift could shield SUI’s price from broader market pressures, provided that interest in NFTs continues to grow.
Conclusion
The whale liquidation and SUI price drop reveal the fragile balance in the crypto market. However, strong user engagement and increasing interest in NFTs indicate that SUI has the potential to recover. The key will be whether the coin maintains its critical support levels or if the market heads for further declines.
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