SUI Coin Drops 7.07% Amid Liquidation Wave

SUI coin, a prominent cryptocurrency, has experienced a 7.07% decline over the past month, trading at $3.72. This downturn followed a substantial 67.90% increase in the previous month, leaving investors disappointed. Despite strong developments such as the launch of the Axelar Bridge, Phantom Wallet integration, Binance Alpha support, an increase in Total Locked Value (TVL), and the “Great Sui Odyssey” event on May 17th, the crucial question arises: is this a retracement or a pause before reaching a new zenith?

The liquidation wave that hit SUI coin hard has sent shockwaves through the market. The liquidation imbalance, which reached an astonishing 53,247%, abruptly overturned the market dynamics, causing a dramatic shift in trader benchmarks. This event underscored the volatility and unpredictability inherent in the cryptocurrency market, where sudden liquidations can lead to substantial price movements. The Kingfisher’s analysis of the SUI coin’s liquidation heat map reveals a cluster of long position liquidations concentrated between $3.90 and $3.95, particularly around $3.933. The analyst noted that as the altcoin’s price fell below this level, leveraged long positions were liquidated, increasing the selling pressure. This liquidation area acted like a black hole, pulling down the price and intensifying the decline. Moreover, the heat map indicates fewer short position liquidations above the current price, warning of limited momentum for a short squeeze capable of pushing the price upwards in the short term. In other words, there is little ammunition for sudden upward movements.

Currently, the price of SUI coin hovers slightly above the critical support zone set between $3.73 and $3.85. If SUI decisively drops below and closes lower in this range, a steeper decline could be triggered, particularly as the pressure from liquidation on long positions persists. For upward movement, the first significant resistance emerges at the $4.02 level. To signal more robust optimism, the price needs to close daily above the $4.35 level. Such a closure could confirm the continuation of the uptrend and set SUI on a path to form a new peak above its current all-time high of $5.35. Given the current market conditions, short-term investors are advised to assess risks carefully and closely monitor liquidation levels and support zones.

The liquidation wave had a profound impact on Sui's market position. Despite showing early signs of recovery, with its market cap climbing to $10.5 billion, the coin faced considerable challenges. The integration of Axelar, a major Layer-1 access, aimed to enhance cross-chain liquidity and ecological value, but the immediate effects were overshadowed by the liquidation event. This integration was part of Sui's strategy to bolster its ecosystem and attract more investors, but the market turmoil created by the liquidation wave posed a significant hurdle.

The broader cryptocurrency market also felt the ripple effects of this event. Cardano and Dogecoin, two other major cryptocurrencies, experienced price warnings and investor shifts. Cardano, which had been struggling to break through key resistance levels, saw technical indicators showing signs of strain. The coin was hovering around $0.67, and traders were closely monitoring its performance. Analysts noted that if Cardano could push through $0.70 with volume, it might flip that level into support and potentially move toward $1.00, marking a full breakout from the recent downtrend. Dogecoin, on the other hand, was in a difficult spot. The coin was holding above $0.18 but struggled to break back above $0.217, which now acted as resistance. The liquidation heatmap from an analyst indicated a massive cluster of short positions near the $0.50 level, worth over $380 million. This level, formed during Dogecoin's last major rally, acted as a magnet for price action, and traders were watching closely to see if the coin could push through this barrier.

Amidst the market turmoil, smaller altcoins like Remittix gained traction. Remittix, which had already climbed 500% in 2025, was starting to show up on experts’ radar. The coin was building a crypto-to-fiat payments platform that offered real-world utility, allowing users to convert over 50 tokens and send money directly to a bank account in under 24 hours. This utility-driven approach positioned Remittix as a stable and reliable investment option, attracting investors who were tired of the volatility and unpredictability of larger cryptocurrencies.

The liquidation wave that hit SUI coin hard serves as a reminder of the inherent risks and opportunities in the cryptocurrency market. While sudden liquidations can lead to significant price movements, they also create opportunities for smaller altcoins to gain traction. As the market continues to evolve, investors will need to navigate these challenges with caution and a keen eye on emerging trends and opportunities.