The recent drop in SUI value has caught the attention of both investors and analysts alike. SUI plummeted 9.25%, transitioning from $3.72 to $3.38, with the most significant selling activity occurring during midnight hours UTC. Remarkably, this selling occurred on a volume that was 78% higher than the daily average, indicating a noteworthy shift in market dynamics.
This decline coincides with broader geopolitical tensions that are currently influencing cryptocurrency markets on a global scale. While Bitcoin has demonstrated resilience, holding above critical resistance zones, SUI finds itself under downward pressure despite possessing strong fundamentals.
The situation was further complicated by the recent exploit of the Cetus Protocol, which resulted in $223 million in stolen assets, with $162 million still frozen. This event has fostered uncertainty within the market; however, the Sui community appears poised to address these challenges head-on, as 71% of validators have already voted in favor of a recovery plan aimed at returning the frozen funds to their rightful owners.
Technical Analysis Breakdown
- SUI-USD dropped from a high of $3.728 to a low of $3.383, reflecting a correction of 9.25%.
- The peak selling pressure was recorded at midnight (00:00), where a 4.0% price drop was noted against a backdrop of 78% higher-than-average trading volume.
- A significant resistance level has been established at the $3.55 mark.
- Recovery attempts were evident at the $3.42 support level, particularly during the 01:00-02:00 time frame, characterized by above-average trading volume.
- The formation of lower highs suggests a descending trendline is in play, indicating ongoing bearish pressure.
- A flash crash was documented between 09:37 and 09:38, where prices fell sharply from $3.45 to $3.40.
- During this flash crash, an extraordinary trading volume of 4.3 million units was recorded.
- In the wake of the initial downturn, a V-shaped reversal pattern emerged, enabling SUI to reclaim approximately 60% of its earlier losses.
- Price has since stabilized within the range of $3.43-$3.44.
- Key support has been established at $3.40, demonstrating substantial buying interest across various timeframes.
- New resistance levels have been identified at $3.45 to $3.46, suggesting a consolidation range. As selling pressure diminishes, a potential for near-term stabilization appears feasible.
