Sui price has missed the recent crypto market surge as investors expressed concerns about a hack in its biggest decentralized exchange network. The token was trading at $3.82 on Friday, up sharply from this week’s low of $3.1795. So, will the Cetus hack affect Sui’s Protocol and its token?
Latest Sui news: Cetus offers bounty
The fast-growing Sui blockchain is facing its biggest issue so far, after hackers infiltrated its biggest decentralized exchange (DEX) known as Cetus and stole funds worth $223 million, in one of the biggest hacks of the year.
In a statement, the company said that it had successfully paused $162 million of those funds and was working to secure the rest. The network said that it had identified the wallet addresses controlled by the hacker and was offering a whitehat settlement.
📜 Dear Sui community, thank you for your patience while our team works on the incident investigation and resolution. Since taking the actions indicated in our previous announcement, we have also done the following: 1. We engaged the broader ecosystem, Sui team, and related
Therefore, the Sui price action is a sign that investors worry that the hack could cause irreparable damage to its biggest DEX network. There are also concerns that the hack may impact its ecosystem growth.
Read more: SUI price drops after LP provider Cetus allegedly hacked
However, there are two main reasons why these fears are overblown. First, Sui Network itself was not hacked, meaning that its blockchain is safe. Instead, what was hacked was a protocol leveraging its technology.
Second, there have been bigger hacks than in other chains in the past. For example, in 2022, hackers stole $325 million by exploiting Wormhole, a bridge.
Hackers also stole $610 million by hacking the Poly Network bridge in 2021, $625 million by hacking the Ronin bridge in 2022, and $130 million from Cream Finance.
There was also a Binance bridge hack that cost investors $570 million. Solana, Ethereum, and BNB Chain have continued doing well since those hacks happened.
The challenge for Sui is that Cetus is the biggest player in its DEX platform. Data shows that it handled $320 million in the last 24 hours and $2 billion in the last seven days. Cetus has cumulatively processed transactions worth over $54.33 billion.
Therefore, there is a likelihood that some Sui users will avoid using Cetus after the hack. This may benefit other DEX protocols in the network like Bluefin, Momentum, and DeepBook. All these protocols have expressed solidarity with Cetus and assured their users that they were safe.
We stand with the Sui community. User funds on Turbos are safe. Turbos’ smart contracts are independent of Cetus and the exploit method would not have been possible on Turbos. Our team has been on call and working closely with ecosystem partners, audit firms and external
Sui price technical analysis
The daily chart shows the Sui token price has done well after bottoming at $1.7288 in April. It has rebounded and moved above the resistance level at $2.8318, the neckline of the double-bottom pattern around $2.
The token has formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. It has also formed a cup-and-handle pattern and is now in the process of forming the handle section.
The coin also formed a long-legged doji candlestick pattern. Therefore, it will likely have a bullish breakout and possibly retest its all-time high of $5.3721. This target is about 40% above the current level.
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