- SUI crashes 87% after massive token unlock triggers liquidation wave.
- Traders brace as SUI battles key support amid market-wide selloff.
- Market panic deepens while SUI struggles to regain lost momentum.
The SUI market experienced one of its most turbulent trading days after a major token unlock triggered panic selling across exchanges. The token’s price plunged from $3.80 to $0.50 within minutes as 44 million SUI tokens worth over $144 million entered circulation. The sudden influx overwhelmed order books on Binance and Coinbase, sparking a liquidation wave of more than $500 million, with $100 million linked to SUI positions. Despite a rebound to $2.40, SUI still recorded a 20.75% daily decline, outpacing the broader crypto market’s 9% drop.
The sharp correction has left SUI investors on edge, watching for signs of stabilization amid heightened volatility. The token now trades at $2.76, reflecting a steep 20% loss over 24 hours and a 22% fall within the week. Its market capitalization has shrunk to $10.01 billion, wiping out over $2.5 billion in value. Meanwhile, trading volume surged by nearly 294%, indicating intense panic-driven activity.
Also Read: Pudgy Penguins Price Prediction 2025–2029: Will Pudgy Penguins Rebound Toward $0.05?
Technical Indicators Show Deep Weakness as Traders Pull Back
According to market data, SUI’s technical structure has weakened considerably. The token broke below its 7-day simple moving average of $3.40 and the key Fibonacci support level at $3.26, previously viewed as a safety zone. This breakdown triggered automated selling and stop-loss orders, accelerating the decline toward $2.82, which represents the 38.2% Fibonacci retracement level.
Moreover, the relative strength index (RSI-14) has dropped to around 28, signaling extreme oversold conditions. If SUI fails to hold above $2.82, it could slide further toward $2.11, a crucial technical support that may determine whether additional forced liquidations occur.
For short-term relief, analysts note that a recovery above $3.26 could give trapped long positions room to exit. However, open interest in SUI derivatives has fallen by 15%, showing that traders remain cautious and reluctant to reenter leveraged positions.
Market Sentiment Remains Fragile Amid Volatility
As uncertainty lingers, the market’s focus remains on how effectively buyers can defend the $2.82 level. Any sustained weakness below that threshold could invite further selling pressure and prolong the token’s fragile state.
Investors are closely monitoring liquidity flows and exchange activity for early signs of recovery. However, with traders reducing exposure and sentiment turning defensive, SUI’s path to stability may depend on whether confidence returns to the broader crypto market.
Also Read: Crypto Market Bounces Back as Veteran Trader Peter Brandt Reaffirms Bullish Outlook
