SUI Rebounds 4.5% from $2.88 Lows but Faces $3.17 Resistance Wall

SUI is making a modest comeback after taking a serious hit, sliding all the way down to $2.88 following the U.S. SEC's...

Written by: Arslan Butt • Friday, June 6, 2025 • 2 min read

• Last updated: Friday, June 6, 2025

Quick overview

SUI is attempting a recovery after a significant drop to $2.88 due to the SEC's delay in reviewing the Canary Capital spot SUI ETF.
Investor confidence has been shaken by a $223 million exploit of the Cetus Protocol, raising concerns about the decentralization of the Sui network.
The broader crypto market is also struggling, with major altcoins experiencing declines of over 10% amid increased regulatory scrutiny.
Technical analysis indicates that SUI's near-term outlook is fragile, with key resistance and support levels determining its potential for recovery.

SUI is making a modest comeback after taking a serious hit, sliding all the way down to $2.88 following the U.S. SEC’s decision to delay reviewing the Canary Capital spot SUI ETF. This delay, which dropped on June 4, really spooked investors and triggered a sharp sell-off that knocked the token below $3.06, wiping out all those hard-earned gains from late May’s recovery.

A Perfect Storm of Problems

This couldn’t have come at a worse time for SUI. Investor confidence was already low after the May 22 Cetus Protocol breach. This wasn’t just any breach – we’re talking about a $223 million exploit of one of the biggest DEX on the Sui blockchain. For context, Cetus had over 62,000 active users and was generating $7.15 million in daily fees.

To make matters worse, validators decided to freeze the hacker’s wallets. While this might have seemed like the right move to protect assets, it’s sparked heated debates about how decentralized the Sui network really is. If validators can freeze funds, is it really decentralized?

As SUI tries to regain trust, this double whammy of regulatory uncertainty and compromised infrastructure is casting a long shadow over the market.

Not Just a SUI Problem

It’s worth noting that SUI’s troubles aren’t happening in isolation. The broader crypto market has been taking a beating, with major altcoins like Solana, Cardano, and Dogecoin all dropping more than 10% in the past week. Increased regulatory scrutiny and a general decline in risk appetite across financial markets have kept altcoins under pressure, limiting any recovery attempts to brief rallies that quickly fade.

Despite Sui’s technical strengths as a blockchain, its near-term outlook remains pretty fragile unless we see a meaningful shift in momentum or regulators provide some much-needed clarity. Right now, that $3.00 mark is acting as a psychological pivot point – which direction it breaks from here will likely determine whether SUI can finally break out of this downtrend.

Technical Analysis: The $3.05-$3.17 Zone Is Key

SUI has managed to bounce back to $3.018, reclaiming the 0.382 Fibonacci level ($3.0174) from the recent $3.2293 to $2.8864 swing. However, this rally still looks more corrective than the start of a new uptrend. The descending trendline and 50-period EMA at $3.1722 are capping any serious upside attempts.

Sui Price Chart - Source: Tradingview — Sui Price Chart – Source: Tradingview

Key levels to watch:

Resistance:

$3.0578 (0.5 Fibonacci)
$3.0983 (0.618 Fibonacci)
$3.1555 (0.786 Fibonacci)

Support:

$2.9673 (0.236 Fibonacci)
$2.8864 (recent swing low)

The MACD indicator remains in negative territory, though the histogram bars are narrowing, which hints at a potential momentum shift brewing. That said, we still haven’t seen a confirmed bullish crossover.

If bulls can push through the critical $3.05-$3.17 range, we could see SUI retest the $3.22 level. But if it fails to hold above $2.97, that could open the door to another leg down toward $2.83. Smart traders will be watching closely for how price interacts with that descending trendline and monitoring volume patterns in the coming sessions.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.