- SUI holds steady above the crucial $3.50 support despite recent pressure from the Cetus DEX hack.
- Recovery signs emerge as network metrics improve and short liquidations spike, hinting at growing bullish momentum.
Sui (SUI) is showing signs of stabilization following last week’s market turbulence triggered by the $223 million hack of Cetus, a decentralized exchange (DEX) within the Sui ecosystem. Despite an 8% drop on Friday that briefly spooked investors, the altcoin has managed to hold firm above the critical $3.50 support level, trading at $3.61 with a modest 0.69% gain at press time on Monday.
The resilience around $3.50 is underpinned by a long-tailed Doji candle formation on Sunday, often seen as a signal of potential bullish reversal. Adding strength to this level is the rising 50-day Exponential Moving Average (EMA), which recently formed a golden crossover with the 200-day EMA on May 5 — a classic bullish indicator.
Also read: Why Ripple’s XRP Is Set to Dominate Global Finance with ISO 20022 Adoption
While the $4.07 resistance, a former support level, remains a key barrier for bulls, the current price action indicates cautious optimism. However, momentum indicators are beginning to waver. The Relative Strength Index (RSI) hovers flat at 50, down from overbought territory, and the MACD histogram has turned increasingly bearish — both warning of possible consolidation or downside if buying strength doesn’t return soon.
Even so, network fundamentals are beginning to recover. According to DeFiLlama, Sui’s Total Value Locked (TVL) rebounded to $1.68 billion after plunging to $1.54 billion from $2.13 billion post-hack. Stablecoin market capitalization on the network remains above $1 billion, suggesting robust liquidity, while DEX volume has also ticked higher to $271.9 million from $178.85 million over the weekend.
On the derivatives front, data from Coinglass reveals a 0.62% increase in Open Interest (OI) to $1.77 billion, signaling renewed trader interest. A spike in the funding rate to 0.0124% and over $1 million in short liquidations further hint at a shift in sentiment toward bullish recovery.
As long as SUI maintains the $3.50 support, the outlook favors a rebound. However, traders should watch for a decisive move above $4.07 to confirm renewed bullish momentum.
