Today, Sui's price surged 13% as institutional staking significantly reduced the circulating supply of tokens.
Nasdaq-listed company SUI Group recently transferred 108.7 million SUI tokens to a direct long-term staking position.
Shorts liquidated amounted to $2.91 million, while SUI trading volume surged nearly 90% during the rally.
Sui, the native token (SUI) of a Layer-1 blockchain network, surged nearly 13% today, with its price rising above $1.08. The Sui token's market capitalization has reached $4.35 billion, making it one of the strongest-performing mainstream altcoins on the market.
While Bitcoin and most major altcoins continue to consolidate, the SUI token price has risen. Many traders are now wondering what caused the SUI token price to rise today.
Institutional investor participation in staking has triggered a supply shock.
One of the biggest catalysts for today’s rally comes from increased institutional buying and staking activity. Nasdaq-listed SUI Group Holdings transferred all 108.7 million SUI tokens it held from DeFi protocols directly into staking.
This amount represents approximately 2.7% of the circulating supply by the Swiss Federal Insurance Office.
This significantly reduced the amount of available SUI liquidity on the exchange, leading to supply constraints and increased demand.
This is especially important because nearly 74% of the total SUI supply has been staked, meaning only a limited proportion of tokens remain actively tradable on the market.
As the number of tokens available for sale decreases, buying pressure can push prices higher more quickly during periods of rising demand.
Short liquidations intensify price surge
Another major factor driving this rally is derivatives liquidation. Following the staking announcement, the SUI market recorded approximately $3.13 million in liquidations over the past 24 hours.
Notably, nearly 90% of these $2.91 million in liquidations came from short traders who bet that this rally would decline.
When a short position is liquidated, the exchange automatically buys back the asset to close the position, creating additional upward buying pressure.
Meanwhile, trading volume surged nearly 90% to approximately $808 million. The sharp increase in trading activity indicates that traders are re-entering the market with renewed enthusiasm.
Meanwhile, Coinglass data shows that SUI open interest climbed to approximately $573.5 million.
The stability of Bitcoin has fueled altcoin rotation.
The broader cryptocurrency market also supported the rise of SUI.
As Bitcoin price stabilizes above the key $80,000 level, traders are beginning to reallocate funds into other cryptocurrencies and blockchain infrastructure projects.
As investors seek higher-volatility opportunities beyond Bitcoin, Layer-1 ecosystems like Sui are attracting increased capital inflows.
This rotation helped boost momentum in today's breakout rally on the Swiss Stock Exchange.
Switzerland price outlook
From a technical perspective, SUI is currently testing a significant support zone. The token recently rebounded from the key support area between $0.81 and $0.97, maintaining its long-term upward trend since 2023.
Traders are currently focusing on a direct resistance level near $1.13, where price recently encountered resistance.
If bulls successfully reclaim and hold above $1.13, analysts believe SUI could quickly rise to $1.50 in the short term, with the next major resistance level at $3.87.
The Relative Strength Index (RSI) is currently nearing 84, indicating severe overbought conditions and potentially triggering a temporary pullback to the support zone around $0.97 before resuming its upward trend.