SUI has shown an impressive bounce recently, but investors must stay extremely cautious at this point.
Despite the current rally, several important macro and internal risk factors are still weighing heavily on SUI’s long-term trajectory.
Five Major Negative Events for SUI Recently:
Massive Token Unlocks
On April 3, SUI unlocked 64.19 million new tokens (~$150 million). This sudden surge in supply triggered an immediate 10% price drop, adding heavy selling pressure.
Broader Market Sell-off
Early April saw a crypto-wide sell-off triggered by rising geopolitical tensions and tariff announcements. SUI collapsed along with the market, hitting $1.76, the lowest point in six months.
Network Outage
In November 2024, the Sui Network suffered a two-hour complete outage due to a scheduling bug. Block production halted, raising serious concerns about network reliability.
Insider Trading Allegations
In October 2024, the Sui Foundation faced allegations that insiders had secretly sold $400 million worth of tokens. Although officially denied, the news severely damaged investor trust.
Sustained Price Collapse
Over the past 90 days, SUI has lost around 60% of its value, showing weak resilience compared to major cryptocurrencies.
Chart Analysis and Forward Strategy:
Resistance Ahead: The $3.8–$4.0 range is a major resistance zone. Without a strong weekly close above it, further upside is unlikely immediately.
High Chance of Retracement: Technicals and market psychology suggest a healthy correction is very likely.
Strong Buy Zone: The ideal entry point lies around $2.2–$2.0, where multiple strong supports (historical, structural, and trendline) converge.
Long-Term Target: After accumulation around $2.0, SUI could launch a powerful rally targeting $7–$10 levels in the next major cycle.
Conclusion:
"Caution now, conviction later. Avoid chasing highs — the real opportunity is around $2.0. Build wisely for the next wave!"
#SUI #CryptoAnalysis