SUI Drops 9% Following Sudden Market Crash and High Selling Activity

SUI experienced a significant decline of 9.25%, dropping from $3.72 to $3.38, with the most intense selling occurring during the midnight hours UTC and volume increasing by 78% over the daily average.

This recent instability is occurring against a backdrop of heightened geopolitical tensions, which are impacting cryptocurrency markets on a global scale.

Despite Bitcoin demonstrating stability beyond crucial resistance levels, SUI has been under pressure even with its solid underlying fundamentals.

The security breach involving the Cetus Protocol, which led to the theft of $223 million in assets (of which $162 million have been frozen), has introduced uncertainty in the market. Nevertheless, the Sui community seems prepared to approve a plan for recovery, with an impressive 71% of validators casting affirmative votes for returning the frozen funds.

Technical Analysis Summary

• SUI-USD fell from a high of $3.728 to a low of $3.383, marking a correction of 9.25%.
• The peak selling pressure was recorded at the midnight hour (00:00), resulting in a 4.0% price decline on volume that was 78% higher than the average.
• A significant resistance level has been established around the $3.55 mark.
• Recovery attempts were noticeable at the $3.42 support level, with above-average volume registered during the 01:00-02:00 timeframe.
• Formation of lower highs has created a descending trendline, indicating persistent bearish pressure.
• A flash crash took place between 09:37 and 09:38, with the price dropping sharply from $3.45 to $3.40.
• A remarkable volume of 4.3 million units was noted during this flash crash.
• A V-shaped recovery pattern has emerged, which has recovered about 60% of the initial losses.
• The price has stabilized within the $3.43 to $3.44 range.
• Strong support approaching the $3.40 level indicates significant buying interest across various timeframes.
• A new resistance level has developed in the $3.45 to $3.46 range, marking a consolidation phase. The easing of selling pressure hints at potential stabilization in the near future.