Sui Coin Derivatives Market Analysis 🤑

Sui Coin, originating from Meta's (formerly Facebook) Diem blockchain project, has positioned itself as a fast and scalable Layer 1 blockchain. Let’s dive into the recent derivatives market data for Sui to better understand its current trends.

1. Open Interest

Open Interest represents the total number of unsettled futures contracts at any given time. It’s a great indicator of market activity and engagement.

Currently, Sui's Open Interest stands at $623.8 million, reflecting a slight 2% decrease in the past 24 hours. This suggests some liquidation activity, potentially signaling a reduction in positions.

2. Funding Rate

The Funding Rate is a fee paid between long and short traders in perpetual futures contracts, balancing the market sentiment.

On Binance, the Funding Rate for Sui is at 0.0165% (positive), meaning long traders are paying short traders. This indicates a market leaning towards bullish sentiment, with more investors expecting Sui's price to rise.

3. Liquidations

Liquidations occur when traders fail to maintain their margin requirements, forcing the closure of their positions.

In the past 24 hours, $5.4 million worth of positions were liquidated. Of this, $4.7 million were long positions and $712,600 were shorts. The higher liquidation of long positions suggests a recent dip in price, triggering these closures.

4. Long/Short Ratio

The Long/Short Ratio measures the percentage of long and short positions in the market.

Sui's ratio currently sits at 2.48, with 71.27% long positions and 28.73% short positions. This reflects strong optimism among traders about Sui’s price performance.

Sui Coin’s derivatives market highlights a bullish outlook with a majority of long positions and positive funding rates. However, the significant liquidation of long positions signals that short-term volatility remains a concern. For investors, it’s essential to monitor these metrics closely to navigate market fluctuations effectively.

#SUI🔥 #suicoin