Sui Token Faces Correction but Bullish Signs Emerge
Sui (SUI) is currently in a corrective phase,dropping 16% from its monthly peak due to a recent Cetus Protocol exploit. The token was trading at $3.50 on Wednesday, lagging behind other top cryptos. Though, there are signs of a potential rebound.
Despite the correction, both technical and fundamental indicators suggest a potential bullish breakout in the coming days. the Sui Foundation has intervened by providing a secured loan to Cetus Protocol to help cover the recent $223 million hack. The loan covers the funds that were moved from Cetus to Ethereum (ETH) addresses. Cetus is now calling on the Sui community to vote on whether to approve the release of $162 million in frozen assets.Sui price may also bounce back as interest in exchange-traded funds rose.21Shares joined Canary in applying for a spot Sui ETF. Analysts hope that the SEC, under Paul Atkins, will approve most of the applied altcoin ETFs by the end of the year. A spot ETF approval woudl be bullish for Sui, as it would open the door for more sophisticated institutional investors to gain exposure to the asset. DeFi Llama data shows that the total value locked in Sui has started to recover after last week’s sharp decline. TVL stands at 693 million SUI, up from a low of 584 million. In dollar terms, TVL has risen to $2.47 billion, while the stablecoin market cap has stabilized at $1.02 billion.Sui price technical analysis Sui price chart | Source: crypto.news The daily chart shows that Sui has formed a descending channel following last week’s Cetus hack. This channel appears to be the flag portion of a bullish flag chart pattern,a classic continuation signal. Price has remained above the 50-day and 100-day exponential moving averages,indicating that bulls still have control. It has also retested the 38.2% Fibonacci retracement level, another positive technical sign.Given these conditions, SUI is likely to bounce, with an initial target at $4.2648, the monthly high and 23.6% retracement level. A breakout above that level would signal further upside, potentially driving the price toward the all-time high of $5.3735, representing a 50% gain from current levels. rnrn
