SUI falls into a bearish trap, with declining derivatives interest triggering a chain of sell-offs

【CryptoWorld】The Sui ecosystem has recently fallen into a liquidity crisis. Weak on-chain demand combined with a cooling derivatives market is exerting continuous selling pressure on this public chain.

Numbers speak the loudest. In the past 24 hours, open interest in futures contracts has plummeted nearly 10%, dropping from a high to a level of $6.797 billion. Long positions are hit hardest, with liquidation amounts reaching $3.14 million, while short liquidations are only $89,000 — this stark contrast clearly indicates the situation. The long-to-short ratio has fallen to 0.92, meaning shorts have taken control.

The ecosystem itself is also bleeding. Total Value Locked (TVL) has decreased by 3.3%, now only $869 million. Even more painful are stablecoin assets, which have lost over 25% of their market value in just one week, reflecting a decline in user confidence in on-chain applications.

From the candlestick charts and indicators, SUI has already fallen below the critical support level of $1.50. Current momentum points toward a lower level of $1.39. The RSI index is approaching 28, entering the oversold zone — which usually suggests that the downward trend may be nearing its end.

But don’t be too pessimistic. If SUI can regain the $1.50 level, a rebound to $1.57 is entirely possible. The key still depends on whether market sentiment can turn around.