What Do SUI Derivatives Market Signals Reveal About Future Price Trends?

Open interest plummets 43% to $1.15 billion, signaling bearish sentiment

SUI's derivatives market has experienced a severe contraction in 2025, with open interest dramatically falling 43% to $1.15 billion. This significant decline represents a major shift from earlier trends, as previously reported data had shown open interest at $1.79 billion with only a 15% drop. The accelerated deterioration signals intensifying bearish sentiment among traders and institutional investors.

The market impact is evident when comparing SUI's performance metrics across different timeframes:

The collapsing open interest coincides with SUI's price plummeting from its January 2025 high of $5.36 to current levels around $2.03, representing a 62% decrease from its all-time high. Despite this bearish market structure, analysts from Evercore ISI maintain an "Outperform" rating, suggesting potential for recovery.

Some experts, including market analysts tracking the falling wedge pattern, project a possible breakout to $6.34 by Q4 2025, which would establish a new record high for SUI if achieved. However, the current derivatives data suggests traders remain cautious, with many unwinding long positions amid persistent selling pressure.

Funding rate turns negative at -0.0060%, indicating short-term selling pressure

SUI's funding rate has recently dipped into negative territory at -0.0060%, signaling a significant shift in market dynamics that warrants careful attention from traders. This negative funding rate directly reflects bearish sentiment in the derivatives market, where short positions currently dominate trading activity. The immediate consequence of this development is increased selling pressure on SUI, which aligns with the token's recent price decline from previous highs near $3.90 to current levels around $2.02.

Market data reveals a concerning trend for SUI holders:

This negative funding rate occurs during a period of heightened market volatility for SUI, with the token having fallen 22.99% over the past week. Gate trading volume has increased to over 16 million, suggesting elevated selling activity. For SUI to reverse this bearish trend, significant buying support must emerge to absorb the current selling pressure, otherwise, technical indicators suggest further downside risk remains likely in the immediate term.

Long/short ratio drops to 0.8195, with 55% of volume from short positions

SUI's market sentiment has taken a decidedly bearish turn as recent data shows the long/short ratio has plummeted to 0.8195, indicating significant dominance by short sellers. This ratio reflects that 55% of trading volume now comes from short positions compared to only 45% from long positions. Such an imbalance typically signals growing negative sentiment among traders regarding SUI's near-term price prospects.

The current ratio data presents a stark contrast to SUI's trading patterns earlier in the year:

This bearish bias has already manifested in SUI's price action, which has experienced a dramatic 44.61% decline over the past 30 days. The October 10th crash saw SUI plummeting nearly 87% in a single day—from around $3.40 to as low as $0.68—before partially recovering to current levels around $2.02.

The rising dominance of short sellers often precedes further price corrections, as evidenced by SUI's continued downward trajectory since the ratio shift began. Institutional traders appear to be positioning for additional weakness, with open interest remaining elevated despite the significant price decrease, suggesting bearish sentiment may persist in the near term.

FAQ

What is sui crypto coin?

SUI is a high-performance blockchain designed for scalability and low-latency transactions. It uses parallel execution and a unique consensus mechanism. SUI tokens are used for fees, staking, and governance in the ecosystem.

Is Sui the next Solana?

While Sui shows promise, it's not definitively the next Solana. It has potential and a strong community, but faces competition from projects like TON Blockchain. The future remains uncertain in the dynamic crypto landscape.

Is Sui a good crypto to buy?

Yes, Sui shows promise in 2025. Its ecosystem growth, technological advancements, and increasing adoption make it an attractive investment option in the Web3 space.

What is the future of Sui coin?

Sui coin is projected to rise by 25-30% to $4.45 by October 2025, driven by strong ecosystem growth and continued development.