The Sui crypto market is showing signs of resilience following last week’s $223 million exploit of Cetus, a major decentralized exchange (DEX) on the Sui network.
Despite the shock to investor sentiment, the SUI token held firm above the critical $3.40 support level, a key threshold that has now become a focal point for analysts monitoring a potential trend reversal.
This recovery coincides with renewed optimism among traders and developers, especially after the Sui community passed a crucial governance vote to return $162 million in frozen assets to Cetus users.
Community-Backed Governance Vote Offers Relief
In a significant move for the Sui DeFi ecosystem, validators voted overwhelmingly—over 90% in favor—to release the frozen funds to a multisig wallet controlled by Cetus. These assets will be returned to affected users according to a structured recovery plan.
“With this result, the impacted funds will be moved to a multisig wallet and held in trust until they can be returned to users,” the Sui Foundation confirmed on X on May 29.
Validators with 90.9% stake approved the early vote, allowing recovered funds to be held in a multi-sig wallet for user repayment. Source: Sui Via X
The decision is a part of a broader strategy involving the Cetus treasury and an emergency loan from the Sui Foundation. The DEX aims to fully restart its operations within a week, while a compensation contract is also under development to address any unrecovered losses. The move not only reassures users but reinforces Sui’s commitment to rapid response during crises.
Sui Price Analysis: Bulls Defend Key Support
Technical indicators suggest that the $3.40 level is acting as a strong SUI support level. Last Friday’s drop of nearly 8% formed a bearish engulfing candle, testing investor confidence. However, the appearance of a long-tailed Doji candle over the weekend—particularly on Sunday—signals that bullish sentiment may be regaining control.
SUI/USDT is in an uptrend, but the price is currently undergoing a correction near the key $3.2460 support-resistance zone. Source: JoeChampion on TradingView
Adding to this bullish scenario is the positioning of the 50-day Exponential Moving Average (EMA), which is approaching the $3.40 mark. This dynamic support zone follows a golden crossover with the 200-day EMA earlier this month, typically a bullish signal in SUI technical analysis.
Still, analysts caution that momentum indicators are losing steam. The Relative Strength Index (RSI) has flattened at 50, indicating a neutral stance after retreating from the overbought zone. Additionally, the MACD and its signal line are trending toward the center line, hinting at waning bullish momentum.
If bearish pressure mounts again, SUI could break below its current support and target the 200-day EMA near $3.01. On the upside, immediate resistance lies at $4.07—an earlier support level turned into a critical SUI resistance level.
Derivatives and On-Chain Data Suggest Renewed Optimism
While the spot market remains cautious, the SUI derivatives market paints a more optimistic picture. Open Interest (OI) for Sui futures climbed to $1.77 billion, a 0.62% increase within 24 hours. This reflects growing trading activity and renewed interest in Sui token speculation.
Moreover, the funding rate ticked up to 0.0124%, signaling that traders are willing to pay a premium to hold long positions—typically seen as a bullish indicator. Short liquidations over the past 24 hours reached $1.04 million, substantially higher than the $604,000 in long liquidations. This imbalance underscores the growing strength of bullish bets in the market.
Sui Network Shows Signs of Recovery
Beyond price action, the broader Sui network is recovering gradually from the shock. According to DeFiLlama, Sui’s Total Value Locked (TVL) plunged from $2.13 billion on Friday to $1.54 billion over the weekend. However, that figure has since rebounded to $1.68 billion, driven by a partial restoration of confidence.
Sui is holding key support, with a potential rally to $4.10 if bulls maintain control, but a drop below $3.22 could trigger a bearish reversal. Source: Goldfinch_song on TradingView
Additionally, the Sui network continues to maintain a stablecoin supply exceeding $1 billion—a healthy sign of underlying liquidity. Daily DEX trading volume also recovered to $271.9 million, up significantly from Saturday’s $178.85 million low.
These improvements are essential for restoring investor sentiment and maintaining Sui’s position as a high-performing Layer 1 blockchain. The network’s recovery could support a stronger bullish case if sustained in the coming days.
Sui Crypto News Update: Centralization Debate Surfaces
While the community celebrated the rapid recovery efforts, the incident has reignited the decentralization debate within the crypto space. Critics argue that the ability of Sui validators—only 114 in total—to freeze wallet addresses questions the network’s censorship resistance.
“Sui is anything but decentralized,” commented one user on social media. However, others praised the validators’ swift action, suggesting it demonstrated the ecosystem’s capacity to self-regulate in emergencies—a feature that might appeal to more risk-averse investors.
SUI Coin Forecast: A Pivotal Week Ahead
As Sui enters a critical juncture, the $3.40 support level will likely determine the short-term direction for the SUI coin. A sustained hold above this level, supported by network recovery and improving derivatives sentiment, could pave the way for a bullish Sui price breakout toward $4.07 and beyond.
Sui (SUI) was trading at around $3.46, down 3.51% in the last 24 hours at press time. Source: Brave New Coin
Still, a failure to maintain current momentum might trigger a correction, potentially revisiting the $3.00 zone. For now, the Sui market outlook remains cautiously optimistic, with key developments in the coming days set to shape the Sui token price target in both the near and mid-term.
With sentiment stabilizing and a major community vote concluded, the Sui crypto story is far from over—whether it stages a strong comeback or faces further volatility will depend on both technical factors and continued trust in the network’s recovery roadmap.
