SUI reverses the bearish trend model, close to a Golden cross – Is a 90% increase coming?

The price of SUI is cooling down after a more than 12% surge yesterday, raising serious concerns – especially for the Shorts, as this unexpected increase could be a double-edged sword – not only opening up profit opportunities, but also potentially putting many traders in a passive position and facing serious liquidation risks.

Trader SUI faces the risk of losses

Data from Coinglass shows that, if the SUI continues to rise to $3.48, the market could see a wave of liquidation worth up to $96 million, mainly from short positions betting on the downtrend. This is an important price level that can cause a chain reaction, forcing the shorts to quickly close their positions to cut losses – thereby inadvertently adding momentum to the upward momentum.

! SUI Liquidation Map | Source: CoinglassThis potential liquidation event further emphasizes the high volatility and risk of trading SUI, especially for those who are bucking the current trend. The fact that short positions are forced out of the market not only pushes prices up quickly, but also makes both sides – long and short – susceptible to unpredictable fluctuations.

Although SUI has surged, the Chaikin Money Flow (CMF) indicator is reflecting a rather unpromising picture as it remains below the 0 threshold. The CMF has consistently weakened, indicating that real money is flowing out rather than in - a clear sign of a lack of sustainable buying power. The recent price increase is likely driven by short position covering rather than new investment inflows from the market.

! SUI CMF | Source: TradingViewIf the trend of cash outflows continues, SUI may come under downward pressure in the short term. The lack of support from speculative and long-term cash flows makes the recent rally at risk of being only a temporary "technical bounce", not enough basis to form a strong and sustainable uptrend.

In this context, all optimism should also be viewed with caution. Without support from real cash flow, the possibility of a reversal and deep correction can completely occur – eroding the confidence accumulated from the recent price increase.

What's next for the SUI price?

After an impressive recovery just before the daily closing session, the price of SUI has triggered a strong reversal, pushing the price back into the bullish zone and escaping the previous correction pattern. Currently, this token is in a "price action tightening" phase – a sideways pattern that often appears before strong breakouts or declines.

In the context of a market sentiment that remains polarized and uncertain, the recent reversal brings a clear bright spot for the bullish speculative side. However, to confirm a real upward trend, the price needs to surpass important resistance levels and hold firmly above the 3.5 USD mark, thus opening up the potential towards 3.75 USD or higher.

SUI is demonstrating notable technical strength by breaking the Head and Shoulders pattern (, which is said to pull the price below $2.5. The rejection of this bearish pattern not only invalidates the risk of a deep drop but also triggers a growth potential of up to 90%, which could bring the price back to the old peak and even exceed the $5 mark – especially as the Golden Cross signal is gradually forming.

![])https://img.gateio.im/social/moments-a6b33e5bbfe7ce5a05b46161b9145cb8(SUI Price Chart | Source: TradingViewIn the past, the Golden Cross has helped SUI increase by up to 350%, establishing an ATH around 5.3 USD. If this scenario repeats, a large-scale price increase could completely happen.

Meanwhile, technical indicators are sending mixed signals – reflecting short-term conflicts but still maintaining a positive long-term outlook. Specifically:

Overall, the medium and long-term outlook for SUI remains positive, with technical signals and price patterns supporting the potential for an upward trend. However, the short-term still poses challenges, especially if the cash flow does not improve and the price cannot hold above the 3.5 USD range.

Monitoring the price range of 3.33 – 3.50 USD closely is essential, as this will be the critical area to determine whether SUI will break out to new highs or revert to a correction cycle.

Lilly