📉 Recent Price Dip
Sui [SUI] is trading at $4.32 after a 5% drop, mirroring a broader market pullback following Donald Trump’s inauguration. This “sell-the-news” event has left SUI at a pivotal level, testing traders’ confidence in its recovery potential.

📈 DeFi Activity on the Rise
DeFi activity on the SUI network is booming. According to DeFiLlama, daily DeFi volumes hit $672M on January 20, the second-highest in history. Stablecoin market capitalization also surged to $421M, up from $301M at the start of the year, showcasing growing interest in SUI’s DeFi ecosystem.

🔑 Critical Support Levels
SUI’s price failed to hold the 0.786 Fibonacci level at $4.56, signaling potential further drops to $3.48. However, if buyers defend the current support level, SUI could rally to $7.69, setting a new all-time high.

📉 Chaikin Money Flow and Buyer Exhaustion
The Chaikin Money Flow (CMF) indicates weakening buying pressure after weeks of intense activity. This exhaustion could strengthen bearish trends unless a fresh wave of buyers enters the market.

💥 Long Liquidations Impact
Over $15M in long liquidations in the last three days has contributed to selling pressure, driving Open Interest down to $1.56 billion. A liquidation cluster at $4.51 could reverse this trend, wiping out shorts and sparking a rally.

📊 Funding Rates and Market Outlook
Funding rates have dropped to a weekly low, signaling reduced bullish momentum. However, with strong DeFi activity and key support levels in play, traders should monitor SUI closely for potential breakout opportunities.

⚠️ Disclaimer
This analysis is for informational purposes only and does not constitute financial advice. Always do your research before investing.