Sui Price News: SUI Risks 35% Drop as “Altcoin Winter” Worsens

Sui (SUI) has shed 39% of its value since the year started, and there might be more bad news coming as the latest price action suggests that the token could fall by another 35%.

In the past 24 hours alone, Sui has dropped by nearly 3%, dropping below $0.90, as the market continues to be concerned about the impact that higher oil prices could have on the global economy.

Higher inflation via an increase in energy prices is the primary concern, as this could prompt the Federal Reserve to adopt a hawkish stance and postpone any planned interest rate cut for the year until the dust settles.

Analysts No Longer Expect a Rate Cut from The Fed In 2026

Data from FedWatch shows that, just a month ago, the market assigned a 46% probability to a 25 basis point rate cut occurring during the June 17 FOMC meeting. Now, those odds sit at just 3.6%. In fact, analysts expect no changes to the federal funds rate for the rest of the year as a result of the situation in the Middle East.

This shift in the market’s sentiment and projections for 2026 has ravaged mid-tier altcoins like Sui. Other tokens like Uniswap (UNI) and Zcash (ZEC) have suffered similar losses of 40% and 52%, respectively, since the year started.

Trading volumes for SUI remain quite high at $300 million, accounting for nearly 9% of the token’s circulating market cap.

Sui Sees Strong Drop in Network Usage

On-chain data from Artemis shows that Sui’s transactions plummeted by 48% last week, indicating a massive retreat in network usage. The blockchain processed 14.4 million transactions according to this provider, the lowest usage on record since July 2024.

Similarly, the amount of stablecoins held within the Sui network experienced a big dip from $580 million to $492 million.

Clearly, investors are not moving their assets to riskier tokens like SUI, and could be instead shunning the network altogether and transferring their assets to stronger blockhains like Ethereum or Solana, or cashing out for fiat.

These on-chain metrics indicate an ongoing “altcoin winter” as investors have rotated their capital toward large-cap tokens like Bitcoin (BTC) as volatility persists and bears continue to dominate the price action.

Bearish Breakout Below $0.85 Could Result in a 35% Loss

Looking at the daily chart, Sui found support temporarily at the lower bound of its consolidation rectangle at around $0.85.

If we get a bearish breakout below this mark, the odds favor a much stronger correction to Sui’s October 10 lows of $0.56. Although these lows were the result of a flash crash and may not necessarily indicate that the market will turn to them to find liquidity, they also match former support levels from two years ago.

The Relative Strength Index (RSI) also sent a sell signal as it dropped below the 40 mark. This indicates that bearish momentum is accelerating, which could lead to further losses in the near term.

We don’t expect a rapid decline at this point. Instead, altcoins like Sui may keep dropping gradually as macroeconomic conditions have worsened.

A break below $0.85, paired with a sell signal from our “decisional” candle system, would confirm that the market is getting ready for its next leg down.