Sui on May 27, 2025: Recovery Post-Hack or Continued Decline?

Sui news on May 27, 2025: Cetus DEX hack, recovery efforts, and price volatility.

On May 27, 2025, Sui (SUI), a layer-1 blockchain built with the Move programming language, remains a focal point in the crypto market but faces significant challenges. Its price is trading around $3.81, reflecting a 5% decline from the previous week. This price drop is largely attributed to the recent hack of Cetus, the largest decentralized exchange (DEX) in Sui’s ecosystem, which resulted in a $260 million liquidity drain. The Cetus hack on May 22, 2025, caused by a smart contract vulnerability exploit, significantly impacted user confidence in the Sui ecosystem. The attacker manipulated price curves and reserve calculations using fake tokens like BULLA and MOJO, draining substantial liquidity from Cetus pools. However, the Sui Foundation and Cetus team swiftly responded, freezing $162 million of the stolen funds. This action has raised hopes for partial recovery, though $61 million remains unrecovered, with some funds bridged to Ethereum. From a technical perspective, Sui is currently at a key support level of $3.50. Analysts suggest that holding this level could stabilize the price and potentially lead to a rebound toward the $4.00 resistance. However, the RSI is in oversold territory, indicating persistent bearish pressure. Trading volume has also dropped by 32% to $850 million, reflecting reduced market activity post-hack. Some analysts predict that Sui could reach $7.01 by the end of 2025 if the market stabilizes, but this target hinges on restoring user confidence. Sui’s ecosystem continues to show strengths. Prior to the hack, the total value locked (TVL) in the network exceeded $2 billion, signaling growing adoption of DeFi protocols like Cetus. Additionally, recent partnerships, such as the launch of a virtual Mastercard in Europe, highlight Sui’s efforts to expand its use cases in everyday payments. However, cybersecurity remains a major concern, and the recent hack underscores the need for enhanced smart contract security. Macroeconomic factors, such as proposed trade tariffs and rising interest rates, could increase selling pressure in the crypto market, potentially affecting Sui’s price. Nevertheless, the Sui Foundation’s recovery efforts and community support could facilitate a gradual rebound. Overall, Sui’s position on May 27, 2025, is precarious yet hopeful. Investors should closely monitor technical developments, recovery efforts, and market conditions to navigate potential volatility.