- A $20 million SUI position held by a whale is at risk of liquidation as the token’s price drops 5%, nearing the critical $4.56 threshold.
- This precarious situation could trigger a broader market sell-off, though some analysts remain optimistic about SUI’s potential for recovery if it breaks past $5.50.
The cryptocurrency market’s volatility has struck again, with the Sui token facing a significant downturn. Amid this price crash, a whale holding a substantial position in SUI is on the brink of liquidation. This high-stakes situation has put $20 million at risk as SUI’s price tumbles by 5%, raising concerns about broader market repercussions.
SUI Price Downtrend Threatens Whale’s $20M Stake
SUI, which recently peaked at $5.35, has plummeted to $4.59, putting intense pressure on a whale’s position. The individual in question holds 4.1 million SUI, valued at $19.2 million, and 100,000 sSUI, worth approximately $470,000. According to Lookonchain data , the whale had deposited these assets on the decentralized lending protocol Suilend as collateral and borrowed $14.4 million in stablecoins.
This strategy, a bet on SUI’s price trajectory, now appears to have backfired. The recent price drop threatens to liquidate the whale’s holdings if the asset hits $4.56, a scenario that could trigger a cascading effect in the market. The whale’s inability to repay the borrowed stablecoins would not only result in liquidation but could also amplify selling pressure on SUI, accelerating its decline.
Will SUI Recover or Crash Further?
SUI’s recent peak was fueled by strong investor sentiment and a surge in open interest. However, the rally was short-lived, and the token has now lost 15% from its high. Analysts are divided on the token’s future trajectory.
Crypto analyst Satoshi highlights a rising channel in the asset’s price action, suggesting a bullish outlook. According to his analysis, the digital asset is currently testing diagonal resistance, with a potential breakout above $5.50 paving the way for further gains. However, if the token fails to hold its current support levels, it could drop further, increasing the risk of liquidation.
This precarious situation has left the market on edge. If the digital asset continues its decline, the liquidation of the whale’s $20 million position could exacerbate selling pressure, affecting not just SUI but potentially spilling over into the broader crypto market.
Broader Implications and Final Thoughts
The SUI whale’s predicament underscores the risks inherent in leveraged positions in volatile markets. With SUI’s price hovering dangerously close to the liquidation threshold, the next few hours are critical. A dip to $4.56 would trigger the liquidation, potentially setting off a chain reaction that could impact SUI and other assets.
However, optimism persists among some analysts. If the crypto currency manages to hold its support and break above $5.50, the token could regain its upward momentum. For now, the market watches and waits, with the fate of the $20 million position hanging in the balance.
