Sui Price News: SUI Crashes on Tariff Threats—Is $1.40 the Next Stop?

Sui (SUI) has gone down by 12% in the past 24 hours alone as President Donald Trump’s trade war with Europe enters a new chapter.

The head of state said that he will impose a 10% tariff on eight different countries in Europe and could hike that percentage to 25% unless they agree on letting the U.S. buy Greenland.

The markets were rattled by this escalation, especially as Trump has demonstrated that he does not bluff.

Although other altcoins have also dropped sharply, most of them are posting single-digit losses. In contrast, Sui’s trading volumes have jumped by 250%, reflecting that selling pressure is accelerating.

Sui Released a Report on the January 15 Network Outage

Today’s strong downtick could have been exacerbated by Sui’s latest outage, an incident that kept the network at a standstill for 6 hours as a result of a “consensus issue.”

In a report released on January 15, the developing team explained that “validators were unable to certify new checkpoints, and transaction submissions timed out. “

However, they clarified that users’ funds were “never at risk” and that external threats were not responsible for the situation either.

Although this incident did not lead to the loss of funds, it was the first time that Sui had to deal with a network outage in its history, reflecting that unaddressed weaknesses still exist.

Paired with a strong rejection of a key resistance level at $1.95, the outage may have contributed to Sui’s strong drop today, alongside the geopolitical factors discussed earlier.

SUI’s Momentum Turns Bearish as RSI Crosses Below the Signal Line

In a recent Sui price prediction, we spotted this rejection and outlined a scenario that has played out as expected at the time of writing.

In the daily chart, SUI showed signs of increasing selling pressure at this key resistance that sent an initial warning of an impending drop.

SUI/USD Daily Chart (Coinbase) – Source: TradingView

The price had been declining for two days in a row after rejecting a move above this area for a second time, while the Relative Strength Index (RSI) was about to send a sell signal as it dropped below the 14-day moving average.

This bearish price action signal was confirmed on late Sunday as the price collapsed after the beginning of the Asian session, following Trump’s tariff threats.

Now, the RSI is sitting at 40, meaning that SUI’s negative momentum has accelerated to the point that we could confirm a trend reversal.

Last Week’s Prediction Has Yielded a 4x Return

Heading to the hourly chart, we shared a potential opportunity for a trade that may yield a 6:1 risk-reward ratio. This trade is already paying off and has already produced a 3.8x RR at this hour.

SUI/USD Hourly Chart (Coinbase) – Source: TradingView

We expect that SUI will land at around $1.4 if bearish momentum accelerates. However, the Relative Strength Index (RSI) has hit extreme oversold levels in this lower time frame, meaning that we could expect a technical rebound in the near term.

For those who opened a short position, taking some profits off the table at this point would be wise, as the market could turn around and evaporate some of these handsome gains.

Now, if SUI continues to drop to the target mentioned above, this means a 10% downside risk is still on the table.