As a sentiment or Organic Analyst, I delved into the SUI 400% move and the diagnosis is Short Squeeze!
What is Short Squeeze?
- When your friend opens a 20X Short and the asset moves up by 5%, he's liquidated and is Forced to buy back the asset he was Selling (Aka Shorting), when a lot of people make this in a timely manner, starts a cascade of liquidations.
How can we See that? From Open Interest, Long/Short Ratios and Liquidations. In the chart below, we have: 1- The Price 2- Long/Short Ratio 3- Open Interest 4- Liquidations
Result of the Analytics:
- SUI Started moving in August 5th in a simple bottom move, making 34% in two days, this first upwards appreciation was not from short squeeze, but from investors buying the asset.
How we know? There was no liquidations to the upside nor Open interest by the time.)
- But since then, for the 288% of the up move studied, almost 200% came from Short Squeeze.
The Green Arrows of both Open Interest and Liquidations make the price move up or down, accordingly.
A strange observation
What got my attention, specially, was the move between Aug 16th to 24th, because people was Shorting and the Liquidations where going as they opened it, that's because we see liquidation and price going up but No Open interest on the closing candles.. There was no time to a candle close with new contracts shorting SUI.
I hope you enjoyed the Sentiment/Organic analysis of SUI's Surge. ;) Show Less
