Investor interest in SUI is fading away after fall from ATH

Sui has moved in a very volatile zone over the past month, but these movements have increased the negative sentiment around the asset.

Sui (SUI) touched an all-time high of $2.36 on October 14 as the cryptocurrency market witnessed a sharp bullish momentum. The launch of Major League Soccer-themed, non-fungible token platform MLS Quest, in partnership with Gamified blockchain startup Sweet, has increased positive sentiment around SUI.

Another important factor was the launch of USD Coin (USDC) on Sui’s mainnet.

But the bullish trend around SUI disappeared two weeks after reaching the ATH as the broader crypto market faced a correction.

trigger negativity

According to data provided by Santiment, the weighted sentiment around Sui on social platforms has seen a huge shift from 0.06 to -0.06 in the last two days.

SUI price, sentiment, open interest and funding rate | Source: Santiment

Negative sentiment often implies times of fear, doubt and uncertainty (FUD in short) and as a result pushes the price downward.

Data from the market intelligence platform shows that total open interest in SUI’s permanent contracts fell from $895 million on October 7, when the market-wide upward move began, to $330 million during the reporting period.

SUI’s open interest is currently at a two-month low.

Despite the increasingly negative sentiment, SUI’s funding rate rose from -0.002% to 0.01%, breaking the $1.95 mark earlier today.

SUI is up 0.3% in the last 24 hours and is trading at $1.88 at the time of writing. It is currently the 18th largest crypto asset with a market cap of $5.3 billion. SUI’s daily transaction volume increased by 30% to $630 million.

In particular, if SUI faces further corrections, lengthy liquidations could potentially send investors into a panic and ultimately lead to sell-offs due to negative sentiment around the asset.