- Sui (SUI) has dropped below $3 amid escalating geopolitical tensions and a broader crypto sell-off, with Open Interest and TVL plunging sharply.
- Technical indicators point to a potential triangle breakdown, signaling further downside risk toward the $2.57 support level.
Sui (SUI) has entered a danger zone, slipping below the critical $3 threshold for the second time this month. The altcoin posted a third consecutive day of losses on Friday, mirroring the broader crypto market crash triggered by the escalating conflict between Israel and Iran. With technical indicators pointing to a bearish breakdown and market sentiment souring, SUI could be bracing for further downside.
Derivatives Market Turns Bearish
Data from CoinGlass reveals a sharp 14% drop in SUI Open Interest (OI) within 24 hours, plunging to $1.20 billion — the lowest in a month. This decline in OI reflects dwindling trader confidence and aligns with a broader market risk-off mood. Long liquidations skyrocketed to $12.63 million, while short liquidations barely touched $766K, driving the long/short ratio down to 0.9369.
Funding rates have shown increased volatility, currently hovering around 0.0024%, suggesting some short-term bullish interest remains. Still, the liquidation imbalance and plunging OI clearly signal rising bearish pressure.
Also read: Solana Price Drops 10% Despite DeFi Dev Corp’s $5B Plan to Buy More SOL
TVL Drops, But Liquidity Holds Firm
Sui’s Total Value Locked (TVL) — a key measure of DeFi activity — dropped 8.11% in just 24 hours to $1.783 billion, reflecting lower capital commitment on the network. However, the stablecoin market cap rose by 2.73% to $1.145 billion, and DEX volume held above $300 million for four consecutive days, showing some liquidity resilience despite price volatility.
Technical Breakdown Looms
SUI now tests a critical ascending support trendline formed by swing lows from April and June. With price action slipping below the 200-day EMA near $3.00 and the RSI at 39 trending downward, a breakdown of the triangle pattern seems imminent. If SUI closes below $2.92 — the June 5 low — the next key support sits at $2.57, near the 23.6% Fibonacci level.
The MACD confirms bearish momentum, flipping below its signal line and forming a red histogram under the zero mark.
What’s Next for SUI?
Unless SUI rebounds above the 50-day EMA at $3.33, a bullish breakout remains unlikely. A close above $3.54 (50% Fibonacci level) could provide some relief, but the current technical and market backdrop suggests more pain ahead.
