SUI drops as $116 million DeFi hack shakes crypto markets

SUI Drops As $116M DeFi Exploit Shocks Crypto Markets

5 November 2025 at 10: 34

Reading time: 2 minutes

The SUI token, the digital currency of the Sui blockchain, suffered a significant 9,2% drop on Tuesday, reaching a low of $2,02. This loss followed the breach of crucial support levels, triggering a wave of technical selling. Trading volume soared during this period, while attempts to recover failed repeatedly.

This selling pressure was fueled by the recent revelation of a $116 million exploit within the decentralized finance (DeFi) protocol Balancer. Such news items undoubtedly influence market sentiment and raise concerns about the safety of investments. Data from CoinDesk Research suggests a decline in exposure to high-risk layer-1 tokens, with evidence of institutional selling of SUI.

Technical Analysis and Market Indicators

During this decline, nearly 42,6 million SUI tokens changed hands, a 68% increase over the daily average. The $2,08 mark, which previously served as support, has now transformed into resistance. Repeated attempts to break above this resistance were unsuccessful, confirming the bearish (downward) trend. By morning in the US, SUI was fluctuating around $2,02 in a low-volume trading environment, indicating that traders are preparing for the next major move.

Market watchers have noted typical capitulation behavior: an abrupt drop within a single hour followed by lower highs and tight consolidation. If the token manages to fall below $2,014, technical indicators could point to targets of $1,98 or even $1,95. For a price recovery, bulls must be able to confidently reclaim $2,07.

The CoinDesk 5 Index, which tracks the largest cryptocurrencies, fell 1,15% on the same day, with all components showing a negative trend. This shows that the pressure is not just on SUI, but has a broader impact on the crypto market as a whole.

Frequently Asked Questions

What are the main reasons for the decline of the SUI token?
The decline is primarily driven by the breaking of support levels and increased selling pressure following the security exploit on the Balancer protocol. As a result, investors have become cautious about risky assets.

How do technical indicators influence the future price of SUI?
Technical indicators, such as the break below $2,014, could point to further declines towards $1,98 or $1,95. The recovery will require bulls to confidently reclaim $2,07, which is crucial for regaining momentum.

What does the broader market downturn mean for investors?
The corresponding drop in the CoinDesk 5 Index highlights that negative sentiment within the market is spreading rapidly. Investors should be aware of the general trends and the influence of certain news items, such as exploits, on crypto prices.

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