- CETUS surged 25% after Cetus Protocol announced a full user bailout backed by its reserves and a Sui Foundation loan.
- Technical indicators suggest the rally may continue, though cautious investor sentiment keeps TVL below pre-exploit levels.
CETUS, the native token of Cetus Protocol—the largest decentralized exchange (DEX) on the Sui blockchain—has surged by 25% within 24 hours following a significant recovery announcement. This sharp rally comes in the wake of a recent exploit that shook investor confidence, but a timely bailout plan involving the Sui Foundation has played a pivotal role in turning sentiment around.
Last week, Cetus Protocol fell victim to a security breach that impacted several users’ funds, sending the token’s price tumbling to around $0.13. However, the protocol’s swift response and transparent recovery strategy appear to have reassured the community. On May 27, Cetus announced it would fully reimburse affected users by leveraging its cash reserves, token treasuries, and a critical loan from the Sui Foundation. This commitment to a 100% recovery has been a game-changer for investor trust.
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From a technical perspective, the CETUS price broke out of a falling wedge pattern on the 4-hour chart, marking the beginning of the rally. This breakout was confirmed by a bullish Moving Average Convergence Divergence (MACD) crossover, signaling growing buying momentum. Moreover, the Money Flow Index (MFI), which had plunged deep into oversold territory during the exploit, showed signs of recovery, supported by a bullish engulfing candle pattern—both pointing toward a sustained price upswing.
Currently, CETUS faces resistance around $0.17. A successful breakout above this level could see the token target $0.24, near the key 0.618 Fibonacci retracement level. However, failure to hold above support at $0.12 could stall the rebound.
Despite the encouraging price action, Cetus Protocol’s Total Value Locked (TVL) remains below pre-exploit levels, signaling some lingering caution among investors. Still, if the protocol continues to restore user funds smoothly and rebuild trust, a renewed influx of capital and a stronger price recovery could follow.
In summary, Cetus Protocol’s proactive bailout, backed by the Sui Foundation loan, has sparked a notable CETUS price bounce and set the stage for a potential comeback—highlighting the importance of swift crisis management in decentralized finance.
