SUI Price Forecast: $223M Hack Fuels 20% Drop—What’s Next?

SUI/USD is in a tough spot after the $223 million Cetus Protocol hack on May 22. This was one of the biggest DeFi hacks of the year and has shaken investor confidence and stalled the token’s rally. Before the hack SUI had risen over 60% in a month, driven by real-world asset tokenization buzz and strong institutional backing, hitting a high of $4.29 on May 12.

The hack triggered an immediate 14% sell-off and SUI is now ranging between $3.48 and $3.62 – nearly 20% below its pre-attack highs. The Cetus exploit involved spoof tokens like BULLA and MOJO manipulating price feeds and draining $11 million from liquidity pools. Validators intervened and froze $162 million of stolen assets but this has raised questions about decentralization as critics pointed to central control and governance gaps.

Mixed Signals from Technicals

On the 2-hour chart SUI is battling resistance at $3.67 with the 50 period EMA capping upside. Candlestick patterns show indecision with small bodied candles and rejection wicks. The MACD is hinting at a bullish shift as the line crosses above the signal line but it’s still below zero – momentum needs confirmation.

Key levels to watch:

• Resistance: $3.67 and $3.81 breakout target

• Support: $3.44, $3.29, $3.12

A close above $3.67 with a strong candle could be a reversal signal. A drop below $3.44 could deepen the decline and test lower support zones.

What’s Next for SUI’s Recovery?

Despite the technical mess SUI’s overall outlook isn’t all bad. The RSI is neutral at 50 and while short term signals are down, the longer term moving averages (50-, 100-, 200-day) are still buy signals.

Coinglass data shows derivatives volume spiked 40% to $3.57 billion in the post hack volatility and open interest dropped 2.9% to $1.77 billion – traders are cautious.Hold tight. Wait for a close above $3.67 with volume or below $3.44. The market is still reeling from the Cetus hack and DeFi drama.