SUI, the native token of the Sui blockchain, fell on Tuesday after breaking critical support levels and triggering a wave of technical selling. The token fell 9.2% to $2.02 as trading volume increased and recovery attempts repeatedly failed.
The sell-off follows Monday’s announcement of a $116 million exploit involving decentralized finance (DeFi) protocol Balancer, which shook sentiment across the industry.
As security concerns increased, investors appeared to reduce their exposure to riskier layer 1 tokens, with SUI showing signs of institutional liquidation, according to CoinDesk Research’s technical analysis model. Nearly 42.6 million tokens changed hands during the outage, 68% more than the daily average, according to on-chain data.
The $2.08 level – once a support zone – became resistance during the rout, with several failed bounces reinforcing the downtrend. During the morning in the United States, SUI was hovering around $2.02 in low-volume trading, suggesting traders were positioning themselves ahead of the next major move.
Chart observers noted classic capitulation behavior: a collapse in a single hour, followed by lower highs and tight consolidation. If the token breaks below $2.014, technical targets point towards $1.98 or even $1.95. To regain momentum, the bulls should reclaim $2.07 with conviction.
The CoinDesk 5 index of the largest cryptocurrencies fell 1.15% on the day, with all constituents lower.
Disclaimer: Portions of this article were generated with the help of AI tools and reviewed by our editorial team for accuracy and compliance. our standards. For more information, see CoinDesk Comprehensive AI Policy.
