Momentum's native token MMT, a DeFi project within the Sui ecosystem, has surged in the past 24 hours, with a gain of over 77% and a price peak at around $0.35. Its cumulative gain over the past 7 days has also exceeded 90%, significantly outperforming the overall performance of the crypto market during the same period.

Trading volume increased rapidly

The direct driver of this surge was a sudden increase in trading activity. Data shows that MMT 24-hour spot trading volume rose to $218.84 million, an increase of 1230.05% compared to the previous period.

Meanwhile, MMT's 24-hour contract trading volume approached $878 million, significantly higher than the spot market. The MMT/USDT trading pairs on Binance, OKX, and Bybit all showed strong activity, with Binance alone exceeding $330 million in 24-hour trading volume.

The comparison of the current trading volume with a market capitalization of approximately $68 million indicates that a large amount of funds have been concentrated on this token in a short period of time, and the price fluctuations are more driven by high-frequency trading and short-term funds, rather than just passive price increases due to low liquidity.

Short selling amplifies price increases

In addition to the surge in trading volume, short liquidation in the contract market further pushed up prices. In the past 24 hours, the total liquidation amount on the MMT network was close to $6.9 million, of which about $5.94 million came from short positions and about $954,900 from long positions.

Binance's MMT/USDT long/short ratio exceeds 1.26, indicating that long positions dominate. The position ratio of the platform's top traders is also higher than 1.44, reflecting that active traders as a whole still tend to be bullish.

This type of structure usually means that after a rapid price increase, some short sellers are forced to close their positions, which in turn attracts further buying, thus amplifying the price increase in a short period of time.

Short-term focus is on the $0.30 level.

After the recent rally, the market is now focused on whether MMT can maintain its position above $0.30. If buying pressure and trading volume remain high, the price may continue to hold its strength in the $0.35 to $0.40 range.

However, considering the cumulative increase of over 150% in the past 60 days, MMT's short-term gains have already been substantial. If trading activity cools down, or short-term funds take profits, price volatility may intensify.