SUI's Price Plunge Defies Robinhood Hype, Raising Market Doubts

Robinhood’s recent listing of the Sui (SUI) token on August 19, 2025, was met with mixed reactions, as the price initially rose but soon faced a pullback, underscoring broader challenges in the cryptocurrency market. SUI initially surged 1.7% within the first 24 hours, reaching $3.67, but then declined by up to 5.5%, settling at around $3.57. This volatility reflects a cautious response from retail traders and broader market uncertainty [4].

The price decline occurred amid a broader downturn in the crypto market, with Bitcoin dropping to $113,000 and the total market capitalization of all cryptocurrencies falling to $3.83 trillion from over $4.1 trillion the previous week. SUI’s 24-hour trading volume dropped 10% to $1.33 billion, while futures open interest fell to $1.84 billion from $1.9 billion earlier in the week. These figures indicate waning demand and reduced speculative activity [1].

From a technical standpoint, SUI has been in a downward trend, moving from a high of $4.20 on August 13 to $3.46 by the end of the week. The token has fallen below its 50-period moving average at $3.20 and formed a bearish head-and-shoulders pattern on the eight-hour chart. Key technical indicators, including the Supertrend and the Relative Strength Index, have turned red, signaling sustained bearish momentum [1]. Analysts warn that the price could continue falling, with the next major support level expected around $3.2845, the lowest level since August 2. A break below this level could drive the price further toward $3.00 [1].

The SUI token’s ecosystem also faces headwinds. The total value locked (TVL) in its decentralized finance (DeFi) protocols has dropped by 4.15% over the last 30 days to $2.79 billion. Additionally, the stablecoin market cap has declined by 12.8% in the past week to $767 million. Staking activity has also waned, with over 27 million SUI tokens unstaked in the last 30 days, representing a loss of $95 million in value [1].

Robinhood’s partnership with Bitstamp was intended to ensure sufficient liquidity for SUI trading on its platform, supporting execution for its 20 million U.S. users. The listing was expected to boost visibility and trading volume, but the initial price drop has sparked concerns about retail traders taking profits early or hesitating to enter the market [4]. Despite this, analysts remain cautiously optimistic about SUI’s long-term prospects, citing the token’s integration with institutional custody and trading services, including offerings from Sygnum and AMINA. Mill City Ventures has also allocated $450 million in liquidity to SUI markets, and asset managers like 21Shares and Canary Capital have filed proposals for SUI-based ETFs [4].

SUI’s market capitalization has grown by 31% to $9.4 billion in recent months, and on-chain activity has increased, with rising transaction volumes and network revenue. While short-term volatility remains a concern, some analysts project gains of up to 75% by October if the token can break through key resistance levels and stabilize [4]. However, such forecasts must be interpreted with caution and are not guaranteed.

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[1] Here's why Sui price is crashing despite Robinhood listing (https://crypto.news/heres-why-sui-price-is-crashing-despite-robinhood-listing/)

[2] SUI Price Correction From $4 Stalls Momentum Toward All-... (https://www.ccn.com/analysis/crypto/sui-price-all-time-high-delayed-following-decline/)

[3] Buy Sui - SUI Price Today, Live Charts and News (https://robinhood.com/us/en/crypto/SUI/)

[4] Robinhood Lists SUI, but Will Its Price Weather the Sudden... (https://coincentral.com/robinhood-lists-sui-but-will-its-price-weather-the-sudden-pullback/)