Sui Sinks 20% Amid Market Meltdown: Can Ecosystem Growth Offset Bearish Pressure?

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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Last updated: 

April 6, 2025

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Sui ($SUI) joined the broader crypto market in a sharp downturn over the weekend, shedding over 15% in the past 24 hours amid fears of a global financial pullback.

The intense sell-off triggered by fears of a global financial pullback has drawn comparisons to the 2008 crisis, with some analysts dubbing the event a new “Black Monday.”

The crypto crash coincided with broader financial market turbulence.

This followed U.S. President Donald Trump’s aggressive tariff proposal, which wiped trillions off global equity valuations and rekindled recession fears in the U.S.

The S&P 500, Nasdaq, and Dow Jones recorded their worst single-day losses in five years.

As of April 7, $SUI is trading below $2, marking its lowest point since October 2024.

Panic selling and a cascade of bearish technical indicators have left the token hovering on the edge of deeper losses.

Despite these price struggles, a closer look at on-chain metrics reveals a more nuanced situation.

DEX Metrics and Active Address Growth Paint a Mixed Picture

According to DeFiLlama, the total value locked (TVL) in Sui’s decentralized exchange (DEX) ecosystem dropped to $1.04 billion this week, a 16.6% decline compared to the previous week.

With this drop, Sui fell to ninth place in terms of weekly DEX volume, now behind chains like Arbitrum and the newly launched Berachain.

However, the protocol still processed over $1.93 billion in volume, a 13.7% weekly increase, securing its position as the sixth-largest blockchain by volume.

Further supporting signs of network health, Sui has climbed to fourth place by daily active addresses, according to Artemis Terminal.

User activity also jumped from 1.38 million to 1.8 million in one week, overtaking Ethereum, $BNB Chain, and $TON—a substantial rise of 420,000 unique addresses.

Similarly, there’s been institutional interest in the SUI ecosystem.

On March 17, Canary Capital submitted a Form S-1 filing to the U.S. Securities and Exchange Commission (SEC), proposing the launch of a Canary SUI ETF, an exchange-traded fund that would hold $SUI tokens directly for staking and utility use.

This development follows Sui’s March 6 announcement of a strategic partnership with World Liberty Financial, a crypto initiative reportedly backed by Donald Trump.

While these partnerships suggest long-term ecosystem development, the short-term price action tells a different story.

Technical Outlook: Caution Ahead as Bears Dominate

As of April 7, the $SUI/$USDT chart reflects a neutral-to-bearish sentiment.

The price continues to trend downward and stays below key moving averages, with the EMA ribbon having flipped red, indicating sustained bearish pressure..

The MACD line is currently positioned at -0.0347, while the signal line sits deeper at -0.1048.

Although the histogram shows slight positive movement, both MACD lines are still in negative territory, suggesting that any recovery is weak and potentially short-lived.

The immediate support zone is located between $1.75 and $1.85. A decisive break below this range could open the door for a further decline toward the $1.50 level, a historically strong area of support.

On the flip side, if $SUI mounts a recovery, it will likely face strong resistance between $2.05 and $2.18, a range where previous price consolidations occurred and where the EMA ribbon currently intersects with the broader price structure.