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Sui (SUI) has managed to hold its ground above a critical price level, signaling a possible turnaround after last week’s major setback. Following the $223 million exploit of Cetus, a decentralized exchange built on the Sui network, the altcoin dropped sharply, but resilient buying interest appears to be stabilizing the token. As of Monday, SUI is trading at $3.61, registering a modest gain of 0.69%, a sign that market confidence may be returning.
Key Technical Support Holds Strong
SUI’s price action late last week sent shockwaves across the market. After a sharp 8% drop on Friday, the altcoin found support at the $3.50 level, forming a long-tailed Doji candle on Sunday. This type of candle often signals indecision but can also mark potential reversals, especially when it forms after a significant decline.
Crucially, the 50-day Exponential Moving Average (EMA) is hovering just above $3.50, strengthening this support zone. This moving average recently crossed above the 200-day EMA on May 5—a golden crossover that is typically seen as a bullish sign for the medium term. The convergence of technical factors suggests the $3.50 level is not only psychologically important but also a critical price floor for buyers.
Resistance and Momentum Indicators Paint a Mixed Picture
While bulls seem to be regaining control, SUI still faces resistance near the $4.07 level—a previous support that has now turned into a near-term ceiling. Breaking through this level would likely require stronger momentum, which currently appears to be lacking.
The Relative Strength Index (RSI) has flattened at the 50 mark, indicating neither bullish nor bearish dominance. It has also retreated from overbought conditions, suggesting that the recent pullback was a necessary cool-off. Meanwhile, the Moving Average Convergence Divergence (MACD) has dipped toward the neutral line, with bearish histograms gaining strength. This points to a potential continuation of the sideways trend unless a new catalyst emerges.
Should bearish momentum increase, a break below the $3.50 support could lead to a further decline toward the 200-day EMA, currently sitting at $3.01.
On-Chain Metrics Suggest a Recovery in Progress
Beyond the charts, the Sui network’s underlying fundamentals are showing signs of recovery. According to DeFiLlama, the network’s Total Value Locked (TVL) fell sharply to $1.54 billion over the weekend, down from $2.13 billion prior to the Cetus incident. However, as of Monday, TVL had bounced back to $1.68 billion—a sign that some liquidity is returning to the ecosystem.
The recovery isn’t limited to TVL. Sui’s stablecoin market capitalization remains above $1 billion, reflecting continued liquidity and user trust in the ecosystem. Trading volumes across Sui-based decentralized exchanges have also begun to rise. On Monday, DEX volume climbed to $271.9 million, up from $178.85 million recorded on Saturday.
These improving metrics provide a strong foundation for potential price stabilization and may help reassure traders who were rattled by the Cetus exploit.
Derivatives Market Shows Growing Bullish Sentiment
In contrast to the cautious tone in the spot market, Sui’s derivatives sector appears to be regaining bullish momentum. Data from Coinglass reveals that Open Interest (OI) in SUI derivatives has climbed to $1.77 billion, marking a 0.62% increase over the last 24 hours. This rise in OI suggests that traders are beginning to re-enter the market with fresh positions.
Adding to the optimism, the OI-weighted funding rate has increased to 0.0124%. A positive funding rate indicates that long positions are dominant, and traders are willing to pay to keep them open—an encouraging sign of bullish conviction.
The increase in long liquidations seen in the past 48 hours also signals that overly aggressive bearish positions are being flushed out, which often sets the stage for short-term recoveries.
What Comes Next for SUI?
Looking ahead, much depends on whether the $3.50 level can continue to hold. If it does, and if momentum indicators begin to swing back in favor of the bulls, a move toward the $4.07 resistance becomes a realistic short-term target. Breaking this level could trigger more significant upside potential, particularly if supported by further improvements in on-chain data and continued strength in the derivatives market.
However, traders should remain cautious. Any signs of renewed selling pressure or a second wave of negative news surrounding the Cetus fallout could send SUI back toward the $3.00 region. Watching the RSI, MACD, and funding rates closely over the next few days will be essential for gauging market direction.
Final Thoughts
Despite the shock of the Cetus DEX hack, SUI has shown surprising strength, holding steady at a key technical level and gradually regaining support from both spot and derivatives traders. With network metrics improving and bullish interest returning, the odds of a recovery are increasing. However, the market remains sensitive, and cautious optimism is likely the best approach for traders navigating this volatile phase.
As the broader crypto market starts the week on a positive note, all eyes will be on whether SUI can capitalize on this momentum—or if it will face renewed headwinds before finding its next leg higher.
