Prices of Sui plummet by 14% within a week, dampened by uncertainties surrounding ETFs and escalating macroeconomic risks negatively impacting investor sentiment.
Sui's struggles persist as the SEC drags its heels on the Canary Capital's spot ETF decision, sending the token plummeting yet again.
Sui—known by its ticker symbol SUI—took a 4% hit on Thursday, pushing its weekly losses up to a gut-wrenching 14%. Although the token showed some signs of life this week, the gloomy mood hanging over its entire ecosystem continues to weigh heavily.
The most recent gut punch came in the form of a less-than-favorable decision from the U.S. Securities and Exchange Commission. On June 4, the SEC postponed its decision on the Canary Capital's spot SUI ETF, stirring up fresh confusion.
This latest setback dragged SUI down to levels last seen during the May 30 flash crash, where the token hit $3.06. At the time, SUI took a 20% drubbing in just 24 hours, with overwhelming selling pressure reversing its brief surge above $4.
The Cetus Protocol hack's lingering pain
The rally above $4 evaporated due to the aftershocks of the Cetus Protocol hack, which took place on May 22. The core Sui-based protocol was exploited for an estimated $223 million, leaving a lasting wound.
Cetus Protocol served as a hub for token swaps and yield farming for more than 62,000 users, generating over $7.15 million in daily trading fees prior to the attack. The contents of the team's response to the hack, however, caused even more damage.
In response, Sui validators decisively froze the hacker's wallets, a move that helped limit the impact of the hack on users. However, this action raised questions about Sui's true decentralization, causing further uncertainty.
Piling on the pressure is the broader crypto market, which has been mired in a slump lately. Major players like Solana, Dogecoin, Cardano, and Shiba Inu have also suffered double-digit losses over the past week.
Cetus Protocol confirms $223m hack, halts smart contract operations
Enrichment Information:
- Token Unlock: Come June 1, 2025, 44 million SUI tokens will be unlocked, equating to about 2% of the total supply[1][5]. This influx of new tokens could potentially causeprice volatility, based on market conditions.
- Price Movement: Despite Bitcoin hitting new all-time highs, SUI's price took a nosedive following a peak of $4.15 in early May[1]. Recently, SUI has shown signs of recovery, bouncing back near the $3.18 mark[2][3].
- Market Outlook: Some predictions hint at SUI rallying toward $4.30 or even higher if conditions are favorable in June, fueled by historical patterns of token unlocks followed by price increases[5]. However, if demand can't absorb the selling pressure, the price could tumble down to $3[1][5].
- Technical Indicators: The 4-hour chart suggests a bullish setup, breaking out from a falling wedge[5]. Furthermore, the Chaikin Money Flow (CMF) currently hovers above the zero signal line, which could help propel the price upward if sustained[5].
- The recent postponement of the Canary Capital's spot SUI ETF decision by the SEC on June 4, stirring up fresh confusion, contributed to SUI taking a 4% hit on Thursday, pushing its weekly losses up to 14%.
- The aftermath of the Cetus Protocol hack, which took place on May 22 and resulted in an estimated $223 million loss, has been weighing heavily on the Sui ecosystem, causing the rally above $4 to evaporate.
- In response to the Cetus Protocol hack, Sui validators froze the hacker's wallets, a move that limited the impact of the hack on users but raised questions about Sui's true decentralization, causing further uncertainty.
- Like SUI, major cryptocurrencies such as Solana, Dogecoin, Cardano, and Shiba Inu have also suffered double-digit losses over the past week, adding to the overall gloomy mood within the crypto market.
- Despite predictions suggesting SUI rallying toward $4.30 or even higher if conditions are favorable in June, fueled by historical patterns of token unlocks followed by price increases, the price could tumble down to $3 if demand can't absorb the selling pressure.
