Sui Analysis on May 28, 2025: Will SUI Recover from Recent Hack?

Sui analysis on May 28, 2025: Price at $3.65, striving to recover post-$260M hack.

On May 28, 2025, Sui (SUI) traded at around $3.65, showing efforts to recover from a recent price drop triggered by a massive $260 million hack of the Cetus decentralized exchange on May 22. The daily trading volume reached approximately $800 million, but the market remains impacted by the hack, which shook user confidence. The Cetus hack, affecting the largest DEX on the Sui network, stemmed from a flaw in the smart contract’s pricing mechanism. This incident caused a 5% price drop for Sui, but reports indicate that about $162 million of the stolen funds were frozen by validators. This swift action, coupled with the Sui Foundation’s collaboration to enhance security, has created positive signals for recovery. From a technical perspective, Sui is testing key support at $3.5. The Relative Strength Index (RSI) stands at around 55, indicating balanced bullish momentum. Holding this support could drive Sui toward the $3.9 resistance, and breaking it may push prices to $4. However, a break below $3.5 could lead to a decline to $3.2. The 50-day moving average at $3.5 acts as dynamic support. Sui’s prior growth, with a 60% surge over the past 60 days, was driven by high transaction speeds and DeFi adoption. However, the recent hack has raised concerns about network security. Some argue that Sui’s limited decentralization, with only 114 validators, may increase censorship risks. Nevertheless, the Sui Foundation’s efforts to recover funds and strengthen protocols could restore confidence. Macroeconomic risks, such as tighter monetary policies or trade tensions, could exert downward pressure on the market. Technical indicators like MACD suggest potential volatility, but the overall outlook is positive due to fund recovery and security improvements. Investors should monitor support and resistance levels and proceed with proper risk management. Overall, Sui is positioned for a bullish outlook due to recovery efforts and DeFi growth potential, but security concerns and reduced user confidence call for caution.