The cryptocurrency market has been rattled by a significant security breach involving Cetus Protocol, a decentralized exchange on the Sui blockchain. According to a recent alert by PeckShieldAlert on May 22, 2025, at approximately 10:30 AM UTC, the exploiter of Cetus Protocol has deposited around 10 million USD worth of stolen SUI assets into Suilend Protocol, a lending platform on the same blockchain. This move is suspected to be an attempt to borrow stablecoins using the stolen assets as collateral, potentially to launder or further exploit the funds. This event has sparked concerns among traders and investors, as it not only highlights vulnerabilities in DeFi protocols but also impacts the price and sentiment surrounding SUI, the native token of the Sui blockchain. As of the time of the alert, SUI was trading at approximately 1.12 USD on major exchanges like Binance and KuCoin, reflecting a sharp decline of 8.3 percent within 24 hours following the news. Trading volume for SUI spiked by 47 percent to over 320 million USD in the same period, indicating heightened market activity and panic selling. This incident also draws attention to the broader implications for DeFi security and the cascading effects on related assets and platforms.

From a trading perspective, the Cetus Protocol exploit and the subsequent deposit into Suilend Protocol present both risks and opportunities for crypto traders. The immediate impact is a bearish sentiment on SUI, with the token experiencing significant selling pressure. On Binance, the SUI/USDT pair saw a drop from 1.20 USD to 1.10 USD between 10:00 AM and 11:00 AM UTC on May 22, 2025, as reported by real-time market data. This rapid decline suggests potential short-selling opportunities for day traders, though caution is advised due to high volatility. Additionally, on-chain metrics from Sui blockchain explorers indicate a surge in transaction volume, with over 1.2 million transactions recorded in the 12 hours following the exploit, compared to an average of 800,000 daily transactions prior to the event. This activity could signal further liquidations or asset movements by the exploiter, potentially impacting stablecoin pairs like SUI/USDC on decentralized exchanges. Traders should also monitor Suilend Protocol’s borrowing rates and liquidity pools, as an influx of stablecoin borrowing could pressure related assets. For those looking at cross-market impacts, the event may indirectly affect other layer-1 tokens like SOL and APT, which compete with SUI in the high-throughput blockchain space, as investors reassess DeFi risks.

Diving into technical indicators, SUI’s price action shows a breakdown below key support levels. As of 12:00 PM UTC on May 22, 2025, SUI breached the 1.15 USD support on the 4-hour chart, with the Relative Strength Index (RSI) dropping to 28, signaling oversold conditions. However, the Moving Average Convergence Divergence (MACD) remains bearish, with the signal line trending below the MACD line, suggesting continued downward momentum. Volume analysis on major pairs like SUI/USDT and SUI/BTC reveals a 55 percent increase in sell orders between 10:30 AM and 1:00 PM UTC, per exchange data from Binance and KuCoin. On-chain data further supports this trend, with large wallet outflows of SUI totaling over 5 million tokens in the same timeframe, as tracked by blockchain analytics. While there’s no direct correlation to traditional stock markets in this incident, the broader crypto market sentiment could influence institutional flows. For instance, a risk-off attitude may drive capital away from smaller altcoins like SUI toward safer assets like BTC or ETH, which saw marginal gains of 0.5 percent and 0.7 percent, respectively, during the same period. Traders should watch for potential recovery signals in SUI if buying volume picks up near the 1.05 USD level, though the risk of further exploits or negative news remains high. This event underscores the importance of monitoring DeFi protocol security and on-chain activity for informed trading decisions.

In summary, the Cetus Protocol exploit and the movement of stolen SUI to Suilend Protocol have created a volatile trading environment for SUI and related assets. While short-term bearish trends dominate, oversold indicators suggest potential reversal opportunities for risk-tolerant traders. Staying updated with on-chain metrics and exchange volume data will be crucial for navigating this situation effectively.