SUI Price Drops 10% After Massive Rally as Traders Watch Key Support

Sui (SUI) experienced a sharp pullback after its impressive weekly rally, falling nearly 10% from Sunday’s local high and sparking concerns that bullish momentum may be fading. Despite the correction, SUI remains one of the strongest-performing altcoins in recent days after gaining almost 40% over the past week.

The recent surge pushed SUI to an intraday high of $1.42, marking its strongest level since late January before sellers stepped in. One of the main drivers behind the rally was SUI Group Holdings, which announced an expansion of its treasury reserves to more than 108 million SUI tokens. The company also revealed that most of its holdings are now staked, generating an estimated 1.8% yield while reducing the liquid supply available on the market.

Additional optimism came from news that CME Group plans to launch SUI futures on May 29, making SUI one of the few layer-1 blockchain assets with regulated derivatives access. Analysts also highlighted the network’s partnership with African payments platform Paga as another bullish catalyst supporting adoption and cross-border payment use cases.

At the time of writing, SUI traded around $1.27, down roughly 4% over the last 24 hours. Technical indicators suggest the decline may be part of a healthy market cooldown after the Relative Strength Index (RSI) surged into overbought territory above 84 before easing lower.

Broader crypto market weakness also contributed to the decline, with several altcoins posting losses alongside Bitcoin and Ethereum seeing capital rotate into stablecoins.

Meanwhile, Sui network activity continues to strengthen. Data from DeFiLlama showed total value locked (TVL) rising above $650 million, while decentralized exchange trading volume jumped more than 200% in the past week. Stablecoin supply on the network also increased steadily, reflecting growing ecosystem participation.

Although SUI remains significantly below its all-time high, continued network growth, institutional interest, and sustained buying pressure could determine whether the altcoin resumes its upward trend in the coming weeks.