SUI Plunges 9% as $116M DeFi Exploit Rattles Crypto Markets

SUI, the native token of the Sui blockchain, experienced a significant drop of over 9% following a $116 million exploit involving the DeFi protocol Balancer. This incident triggered a wave of selling as confidence in the cryptocurrency market waned, especially among institutional investors. The sell-off was marked by a surge in trading volume, with nearly 42.6 million tokens changing hands, representing a 68% increase over the daily average. Technical analysis indicated that the $2.08 support level had flipped to resistance, and multiple attempts to recover above this level failed. The price fell to $2.02, and analysts warned that if the token fell below $2.014, it could target prices as low as $1.95. For recovery, SUI would need to reclaim $2.07 with strong conviction. This broader market sentiment resulted in a 1.15% drop in the CoinDesk 5 Index of major cryptocurrencies, reflecting the widespread impact of security concerns on digital assets.

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