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Sui price crashed for the third consecutive day, ignoring a major exchange listing that could expose it to millions of customers. It slipped to a low of $3.4735, down by 20% from its highest point this year. This crash may continue as it has formed a highly bearish chart pattern.
Sui Price Drops Despite Robinhood Listing
The Sui token plunged even after Robinhood added it to its platform. This listing is a big deal as Robinhood is one of the biggest fintech companies in the United States with a market capitalization of nearly $100 billion.
The most recent results showed that Robinhood has over 26.5 million funded customers and handled cryptocurrencies worth over $28.3 billion in the second quarter.
As such, it is relatively bizarre that the Sui price ignored the listing news and continued the downward trend that started in July when it peaked at $4.4270.
Historically, cryptocurrencies usually surge after being listed by one or more major exchanges. For example, HBAR price recently surged after Robinhood listed it.
Sui Network Challenges Contributed to the Crash
The most likely reason why the Sui price crashed is that the network is facing some challenges. First Artemis data shows that the network’s stablecoin supply has plunged 11% in the last 30 days to $684 million.
A surge in other metrics offset this decline. For example, the number of stablecoin addresses has jumped by 96% in the last 30 days to 448,000, while the adjusted volume rose by 17% to $165 billion. Stablecoin growth is a crucial aspect of blockchain technology, particularly following the recent signing of the GENIUS Act by Donald Trump.
More ecosystem data shows Sui’s total value locked (TVL) in the decentralized finance (DeFi) industry has slowed. It has remained around $2.7 billion in the past few weeks. In contrast, the TVL of other competing chains like Ethereum, Solana, and BNB Chain has jumped by double digits in the last 30 days.
Meanwhile, there are signs that the total DEX volume in Sui protocols will be lower this month than in July. It has handled volume worth $7.5 billion this month, much lower than $15 billion last month.
DeFi, DEX, and stablecoin growth are important because they impact a chain’s revenue. The chart below shows that the chain fees this month stood at $541,000, down from over $1.05 million last month.
On the positive side, the Sui price may benefit from the upcoming altcoin ETF approvals. There are rising odds that the SEC will approve the Canary Capital and 21Shares SUI ETF by the end of the year.
Sui Price Technical Analysis as Risky Pattern Formed
The daily chart shows that the Sui price has crashed in the past few weeks, moving from a high of $4.43 in July to the current $3.50.
A closer look reveals that the coin has formed a highly bearish double-top pattern at $4.2830, with a neckline at $2.2915, its lowest level since June this year. A double top is one of technical analysis’s most bearish chart patterns.
Sui Coin price has also formed a head-and-shoulders pattern, attempting to move below the 50-day and 100-day moving averages. Such a move will confirm the bearish breakdown and point to more downside, potentially to the neckline at $2.30.
Summary
Sui price ignored the latest Robinhood and continued its downward trend as selling pressure prevailed. Its ecosystem weakness persists, with the stablecoin supply declining and the total value in DeFi stagnating. Also, it has formed numerous chart patterns, pointing to more downside in the near term, potentially to the neckline at $2.2915.
