SUI Token Falls 6% Amid Stronger U.S. Dollar and Broader Crypto Market Pullback

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SUI, the native token of the Sui blockchain, dropped nearly 6% in the past 24 hours, retreating from an overnight rally as a strengthening U.S. dollar and broader market weakness weighed on sentiment.

After briefly surging to $4.44 in overnight trading, SUI reversed course, closing at $4.11, a 5.25% loss for the session. The price now sits at $4.04, according to CoinDesk Analytics. This came off the back of a sharp spike in volume, with over 32 million tokens traded well above the token’s daily average, suggesting heavy profit-taking and short-term volatility.

Initial support held around $4.32 but quickly gave way as sellers intensified their activity, dragging the price through key technical levels. Analysts are now watching resistance between $4.20 and $4.24, with a potential double-bottom forming in the $4.08–$4.09 range.

The pullback in SUI reflects a broader risk-off move across crypto markets. The CoinDesk 20 Index, which tracks major digital assets, slipped 1.4% in the same period. A notable driver of this downturn is the U.S. Dollar Index (DXY), which climbed nearly 1% on the day. A rising dollar tends to pressure risk-on assets like cryptocurrencies, as capital shifts towards more stable, yield-bearing assets in the short term.

While the short-term sentiment has soured, it’s worth noting that SUI remains up 46% over the past month, outperforming the CoinDesk 20’s 33% gain. This outperformance reflects growing traction within the Sui blockchain ecosystem, particularly in decentralised finance.

Earlier this month, DeFiLlama data showed the total value locked (TVL) in Sui-based protocols surpassed $2 billion, pointing to increased developer activity and user demand on the network. The project continues to attract attention as a next-generation blockchain aiming to offer speed and scalability where older networks have faltered.

Despite current market volatility, interest in the Sui ecosystem remains resilient. However, in an increasingly uncertain macro environment, assets like SUI may remain exposed to short-term fluctuations driven by external pressures, including monetary policy and dollar strength.

With Western governments, including the current Labour administration in the UK, offering little clarity or incentive to support blockchain innovation, investors are watching markets like the U.S. and dynamic projects like Sui for leadership and real progress