SUI has not yet broken through the 4 dollar resistance level, need to follow the subsequent impact of the Cetus event.

Gate News bot message, as of the time of writing, SUI is currently at 3.62 USD, having fallen 1% in the past 24 hours, and has not yet recovered from the 223 million USD Cetus Protocol hacker attack incident on May 22.

This attack is one of the largest DeFi hacker attacks of the year, casting a shadow over the Sui ecosystem. It has raised concerns about the level of decentralization of the network and suppressed bullish momentum. Prior to this attack, SUI had risen over 60% in a month, reaching a peak of around $4.29 on May 12.

The previous strong surge of SUI was attributed to the growing interest in the tokenization of real-world assets (RWA) and new institutional partnerships. However, this attack triggered a significant sell-off of SUI, falling nearly 14% in one day. Currently, SUI has dropped nearly 20% from the price level before the hacker attack, with trading prices fluctuating between $3.48 and $3.62.

The native token of the Cetus protocol fell by 40%, and USDC briefly lost its peg due to liquidity loss. SUI validators successfully froze $162 million in stolen assets by blacklisting the attacker's wallet. This prevented most of the funds from flowing out of the network, but it also raised questions about the real power of validators.

Critics argue that on-demand freezing of transactions goes against the principles of decentralization. Some point out that a small number of validators and insiders may control most of the network, while the number of users participating in governance is few.

On the market front, Coinglass data showed that SUI derivatives trading volume jumped 51.32% to $3.76 billion over the past day, suggesting an increase in short-term interest, possibly from volatility traders. Meanwhile, SUI open interest fell 0.85% to $1.78 billion, suggesting that some traders may be pulling money or taking profits.

Technical indicators show mixed signals. The Relative Strength Index is neutral around 50; the short-term momentum indicator points to a possible rise, but the Moving Average Convergence Divergence shows a bearish crossover. The short-term moving average indicates downward pressure, while the long-term indicators are giving more bullish signals.

The 50-day, 100-day, and 200-day moving averages all issued buy signals, indicating that if SUI can withstand the losses caused by the Hacker attack, its overall trend will continue to rise. Currently, SUI is still below the $4 resistance level. Traders are closely watching whether it can break through the resistance level, or if the aftereffects of the Cetus attack will continue to weigh down the market.

Source: crypto.news