SUI DEX Volumes Explode 89% – So Why Are Traders Still Side-Eyeing the Rally?

Decentralized exchange activity on SUI just ripped past sluggish market trends with a near-doubling in volume. Yet the champagne stays on ice—traders are treating this pump like a Wall Street analyst’s price target: interesting data, questionable conviction.

Behind the surge: SUI’s low-latency execution and meme-friendly tokenomics are pulling in degens, but ’institutional adoption’ remains a PowerPoint slide at best. The chain’s TVL still trails Ethereum’s by a factor of 100, proving crypto’s oldest rule: liquidity attracts liquidity... until it doesn’t.

The real test? Whether this volume sticks after the next Bitcoin 10% correction—because nothing separates fair-weather traders from diamond hands like a good old-fashioned market panic.

Retail buzz grows, but traders hesitate

Social dominance for SUI has climbed to 1.24%, while Weighted Sentiment has risen to 2.30, according to Santiment data. These spikes suggest increasing interest and discussion surrounding SUI across social channels. 

Historically, such moves often precede or accompany speculative rallies, especially when aligned with network activity growth.

Source: Santiment

SUI’s derivatives metrics showed a notable cooldown. Derivatives volume dropped 19.65% to $3.57 billion, while Open Interest fell 12.18% to $1.61 billion. 

This decline signaled reduced trader participation and lower speculative positioning. In many cases, this reflects uncertainty or profit-taking following price volatility. 

Can flat Funding Rates ignite a squeeze?

Binance’s liquidation map revealed a dense cluster of short liquidations between $3.75 and $4.00.

SUI’s press time price at $3.709 sat just below this region, indicating that a modest upward push could trigger forced short closures. 

Cumulative short liquidation leverage exceeded 25 million USDT in this zone, exposing a vulnerability to sudden price spikes. 

Source: Coinglass

Despite the price swings, Funding Rates remain muted. At the time of writing, the aggregated Funding Rate stood at 0.01%. 

This flat structure reflected a balanced market, with no extreme bullish or bearish bias among Leveraged traders. Such neutral rates reduce the likelihood of sudden reversals triggered by over-leveraged positions. 

Is SUI gearing up for a breakout within its channel?

SUI was trading inside a clear ascending channel at press time, with support NEAR $3.53 and resistance around $4.58. 

The price recently touched $3.72, hovering near the middle of the channel. The 9 EMA sat at $3.95, while the 21 EMA tracked slightly higher at $3.98. 

Meanwhile, MACD lines showed weakening momentum, with the signal line at -0.0267 and MACD at -0.0385. While the structure remained intact, bulls must defend the mid-zone to maintain trend continuation.

Source: TradingView

SUI’s rising DEX usage, elevated social sentiment, and short-side liquidation potential create favorable conditions for bullish continuation. 

However, weakening derivatives activity and flat Funding Rates highlight a cautious mood among traders. 

Whether SUI breaks above $3.90 and reclaims upper channel levels will depend on renewed demand and sustained ecosystem engagement.