SUI hits new ATH as network clocks record $466M DEX Volume – Is $5 next?

• SUI’s worth soared to new highs on the charts, aided by sturdy DEX volumes
• The state of demand is value assessing right here, particularly within the context of the potential for profit-taking

Sui community has reportedly simply famous a burst of on-chain exercise, one which has pushed its DEX volumes to report highs. Its worth motion has additionally been extraordinarily unstable this week, with the identical hitting a brand new ATH on the charts.

In keeping with its official X deal with, the Sui community’s complete recorded DEX quantity hit a new milestone of $35 billion. This was backed by a burst of every day quantity which peaked at $466 million – Additionally a brand new every day historic every day excessive for the community.

The surge in DEX demand advised that there was vital demand for the SUI cryptocurrency. This will have contributed to its bullish efficiency over the past 2 days.

SUI had adopted a parabolic curve in November and the primary week of December. It additionally appeared to have been coming into a profit-taking and retracement section earlier this week, however issues turned out to be completely different. The resurgence of mid-week demand fueled a rally that noticed it hike to a brand new ATH. In truth, the altcoin’s worth peaked at $4.91, igniting hope that it may quickly cross the $5-mark.

Supply: TradingView

Nevertheless, there have been expectations of a retracement regardless of the current uptick. This, due to the bearish divergence between the worth and the RSI. Quite the opposite, it’s value stating that the current surge was pushed by the return of spot demand.

Assessing SUI spot and derivatives demand

There have been $13.67 million value of spot inflows on Wednesday and about $5.19 million value of inflows within the final 24 hours. Nevertheless, these inflows have been considerably larger than inflows seen within the first week of December.

Supply: Glassnode

The current surge in spot flows and push to a brand new ATH was additionally backed by a $5.15 billion token quantity surge, based on DeFiLlama. This was the second highest quantity spike noticed within the Sui community’s historical past.

Supply: DeFiLlama

Regardless of this observations, nevertheless, SUI’s TVL has continued to say no. In truth, it recorded figures of $1.64 billion at press time – A possible indication that some holders have been pulling out their liquidity lately.

The declining TVL appeared to be in keeping with the declining RSI, alluding to the chance that profit-taking was fairly excessive. These expectations have, nevertheless, elevated the danger of liquidations. Particularly for brief merchants anticipating the worth to drag again.

Lastly, SUI brief liquidations peaked at $5.5 million within the final 24 hours as the worth climbed larger. This warrants warning for merchants, particularly these planning to take up extremely leveraged positions.