SUI has recently seen a 12% rise in the past 24 hours, bringing back some investor confidence. However, this price increase could prove disastrous for traders, as it may trigger significant liquidations if the altcoin reaches a key price level. 

The recent rally is a double-edged sword with potential consequences for short traders.

SUI Traders Face Losses

According to liquidation data, SUI faces a potential $96 million worth of liquidations if its price hits $3.48. This would primarily impact short traders, who have positioned themselves for a price decline.

Should SUI rise towards this critical level, short contracts would be liquidated, forcing traders to cover their positions and further propelling the price increase.

This potential liquidation event highlights the volatility of SUI and the risks involved for traders who are betting against it. With a surge in price, short traders might be forced to exit their positions, inadvertently fueling the uptrend.

As a result, this scenario could exacerbate the price rally, putting both short and long traders at the mercy of unpredictable price movements.

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