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Sui Token has faced extended bearish pressure following the U.S. Securities and Exchange Commission’s (SEC) decision to delay its ruling on a spot exchange-traded fund (ETF). This delay has further dampened sentiment within the Sui ecosystem, leading to a significant price decline.

Price Performance Under Pressure

Sui (SUI) experienced a 4% drop on Thursday, adding to its cumulative losses of 14% earlier in the week. Despite efforts to recover, the token remains under bearish pressure due to weak sentiment across its network. On June 4, the SEC postponed its decision on Canary Capital’s proposed spot SUI ETF, which added uncertainty to the market.

As a result, Sui’s price dropped close to its weekly low of $3.06, a level it touched during the May 30 flash crash. During that crash, the token saw a sharp decline of 20% within 24 hours, driven by unprecedented selling volume that erased its brief rally above $4.

Impact of the Cetus Protocol Hack

The brief rally above $4 was overshadowed by negative sentiment stemming from the Cetus Protocol hack. On May 22, the core Sui-based protocol was exploited for approximately $223 million, significantly affecting the token due to its integral role in the ecosystem.

Cetus Protocol is a key component of the Sui network, facilitating token swaps and yield farming for over 62,000 active users. Additionally, the protocol generated over $7.15 million in daily trading fees. However, the team’s response to the hack raised concerns among traders and investors.

Decentralization Concerns

In reaction to the hack, Sui validators decided to freeze the hacker’s wallets. While this action helped protect user assets, it sparked debates about the token’s level of decentralization. Many traders questioned whether Sui’s governance aligns with the principles of blockchain decentralization, further contributing to its price struggles.

Broader Market Pressures

The challenges facing Sui have been exacerbated by broader market conditions. Last week, major cryptocurrencies like Solana, Dogecoin, Cardano, and Shiba Inu also experienced double-digit losses, creating a ripple effect across the market.

For investors, it’s important to monitor developments within the Sui ecosystem and broader crypto market trends. Staying informed about regulatory decisions, security concerns, and decentralization issues can help navigate the volatile landscape of cryptocurrency investing.

Tips for Managing Bearish Sentiment:

  • Stay updated on regulatory news and developments affecting key tokens.
  • Consider diversifying your portfolio to mitigate risks.
  • Evaluate the governance and security measures of the projects you invest in.

The Sui ecosystem continues to face significant challenges, but understanding these factors can help investors make informed decisions in the evolving cryptocurrency market.

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