- Abraxas Capital’s short positions on BTC, ETH, SOL, HYPE, and SUI were in a floating profit over $55M.
- The weekly candles showed weakness but holding the $3 zone was critical for a bounce back.
Abraxas Capital took advantage of the cryptocurrency market downturn to generate profits from shorting Bitcoin [BTC], Ethereum [ETH], Solana [SOL], Hyperliquid [HYPE], and Sui Network [SUI] on the HyperLiquid exchange, as noted by OnChain Lens.
These trades, involving two wallets, indicated a strong belief by the firm in a significant drop in major assets.
Specifically for SUI, the short interest led to a decline in its price, potentially influenced by market sentiment and short sellers leveraging borrowed funds.
Is SUI in a pullback or breakdown?
As SUI’s price dipped to $3.00, it faced a crucial test that could either support gains or trigger a recovery.
There were signs of uncertainty, suggesting that bullish investors were cautiously waiting for the right moment. If SUI reverses from $3.00, it could aim for $4.00 and eventually retest its recent high of $5.36.
If the $3.00 level holds, the price could rebound towards $3.90 and potentially revisit $5.36 in the future.
However, a failure to defend this level might push SUI towards $2.00 or the $1.38–$1.50 range, historically significant support levels from March and April.
The MACD histogram remained green and positive, indicating that the momentum was not fully shifting towards bearish territory.
A break in higher lows within the price structure suggested a possibility of SUI forming a broader negative pattern.
Source: TradingView
If the $3 level holds, a bounce could potentially drive the market towards $3.90 or even $5 in the future.
However, if bearish trends persist, SUI may struggle to maintain key support levels, resulting in further declines.
Should the SUI market stabilize and shorts begin covering, a rapid and significant rally could ensue.
Liquidations leaning on the sell-side
Notably, the liquidation map indicated a significant majority of traders positioned on the sell side. Approximately $13.78 million in short liquidations remain at risk if the price moves into the $3.39 cluster.
This specific range, between $3.05 and $3.39, contains leveraged positions at 10x, 25x, and 50x. A breach above $3.06 could trigger a cascade of liquidations, compelling short sellers to exit their positions.
Conversely, there is a buildup of cumulative long positions just below $3.06, particularly between $2.70 and $2.95. This setup presents a dual risk scenario—shorts may face squeeze if the price surges, while longs may rush to exit if it drops.
Source: CoinGlass
Furthermore, selling pressure from long positions on SUI could intensify selling activity as traders aim to limit losses or secure profits.
Despite the presence of two distinct groups, the overall sentiment suggests a bearish bias among most participants.
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