SUI, the native token of the Sui blockchain, is undergoing renewed scrutiny as the price traded at $3.46 on Friday — well below the recent peak of $4.18.
A mix of broad market uncertainty and a major security exploit at the decentralized exchange CETUS triggered a drop of nearly 20% in just over a week.
However, new optimism has emerged, driven by two major developments: overwhelming community approval of CETUS’s recovery plan and speculation around a potential spot SUI ETF.
These developments have prompted analysts and investors to reassess the token’s short-term outlook.
CETUS recovery vote shifts sentiment
The sharp fall in SUI’s price coincided with an exploit of the CETUS protocol that resulted in $223 million in digital assets being stolen.
Of that amount, roughly $162 million has been frozen through coordinated efforts involving validators and security teams.
Initially, the incident cast a bearish shadow over the SUI ecosystem, undermining investor confidence and pushing the token to a low of $3.32.
Sentiment shifted after CETUS announced that the community had approved a formal recovery plan.
According to the team, more than 90% of validators and stakers voted to return frozen funds to affected users.
The rapid community response and coordinated mitigation efforts helped restore a degree of trust in the protocol and limited downside pressure on SUI.
That shift showed up in price action, which held above the 50-day exponential moving average (EMA) despite the hack.
Technical indicators now suggest the formation of a bullish flag — a chart pattern often seen as a continuation signal — further supporting the case for a potential rebound.
SUI ETF filings fuel the rebound narrative
Alongside protocol-level recovery, market optimism has been bolstered by rising speculation around a spot SUI ETF.
21Shares recently joined Canary in filing applications, lending legitimacy to the push for broader institutional access to altcoins like SUI.
If approved, a spot ETF would allow regulated investment products to hold SUI directly, opening the door to institutional capital and potentially improving liquidity and price stability.
The U.S. Securities and Exchange Commission (SEC), now led by Paul Atkins, has not yet approved any altcoin ETFs, but analysts expect decisions on several filings — including those for Litecoin (LTC), XRP and Cardano (ADA) — before year’s end.
This renewed focus on exchange-traded products has put SUI on the radar of institutional investors.
An X post by Crypto Bullet, a crypto analyst with a sizable following, suggested the token could be “setting up for a parabolic move” that might push it above $10 by June.
The analyst argued that SUI has completed a wave 2 correction and may now be entering a potential wave 3 rally phase.
Analysts eye a retest of $5.37, with $10 in sight
Despite the recent pullback, market participants have not ruled out a strong upside move.
Technical analysis points to resistance levels at $3.945 and $4.8587, with the potential to retest the previous all-time high of $5.37 if momentum continues.
If ETF-related speculation remains robust and CETUS successfully implements its fund-return plan, a break above these levels could send SUI into double digits.
However, any upside is likely to depend on broader macroeconomic and regulatory developments, especially amid ongoing geopolitical tensions that have unsettled digital asset markets globally.
For now, SUI’s price remains below $3.50, but a convergence of fundamental improvements and technical signals could spark the next leg up.