Why did the price of SUI fall?

Sui (SUI) dropped 2.80% in the last 24 hours to $1.47, slightly underperforming the overall crypto market, which fell 2.58%. This short-term decline is mainly due to a market-wide shift away from risk and profit-taking after recent institutional investments. Here are the key points:

1. Geopolitical Tensions & Market Sell-off – New U.S. tariff threats sparked a broad crypto sell-off, putting pressure on SUI along with major cryptocurrencies.
2. Institutional Profit-Taking – After $5.7 million flowed into SUI last week, investors pulled back $378 million from the crypto sector on Friday, taking profits.
3. Technical Weakness & Oversold Signals – SUI’s price is struggling below important moving averages, but an oversold RSI suggests a possible short-term stabilization.

Deep Dive

1. Geopolitical Tensions & Broad Market Sell-off (Bearish Impact)

Overview: On January 20, 2026, crypto markets dropped amid what’s been called the "Trump Tariff Turmoil." The U.S. threatened new tariffs on Denmark due to tensions over Greenland, causing investors to move away from riskier assets. Bitcoin fell 2%, and some altcoins, including SUI, dropped over 10% during certain sessions, according to Decrypt. The sell-off was intensified by low trading volume during a U.S. holiday.

What this means: SUI’s price closely follows the overall market mood. When geopolitical risks rise, traders often sell altcoins first to reduce risk. This broad market selling pressure outweighs any positive news specific to SUI in the short term.

What to watch: If trade tensions ease or positive economic news emerges, we could see a bounce back across the crypto market.

2. Institutional Profit-Taking After Strong Inflows (Bearish Impact)

Overview: Last week, digital asset funds saw $2.17 billion in inflows—the largest since October 2025—with SUI attracting $5.7 million. However, on Friday, January 20, investors pulled out $378 million from the crypto sector, as reported by CoinShares. This reversal was linked to geopolitical concerns and changing expectations about Federal Reserve policies.

What this means: Although institutions showed strong interest earlier, they quickly took profits or reduced exposure when uncertainty increased. This selling pressure weighs on SUI’s price in the short term, even if the long-term outlook for institutional involvement remains positive.

What to watch: Next week’s CoinShares report will help determine if this outflow is a one-time event or the start of a longer trend.

3. Technical Breakdown & Oversold Conditions (Mixed Impact)

Overview: SUI’s current price of $1.47 is below its 7-day Simple Moving Average (SMA) of $1.71 and 30-day SMA of $1.64, signaling short-term bearish momentum. However, the 14-day Relative Strength Index (RSI) is at 35.63, nearing oversold levels, which can sometimes lead to a short-term price bounce or stabilization.

What this means: Falling below key moving averages confirms selling pressure and could lead to more technical selling. But the oversold RSI suggests that the selling might be losing steam soon, potentially setting the stage for a pause or minor recovery if the overall market sentiment improves.

What to watch: A daily close above the 7-day SMA near $1.71 would be an early sign of renewed buying interest. Conversely, a drop below the recent low of $1.36 could trigger further declines.

Conclusion

SUI’s recent 24-hour drop is less about its own fundamentals and more a reaction to broader market risk-off sentiment and institutional profit-taking. The quick reversal of earlier inflows shows how sensitive altcoins are to shifts in overall market mood. For investors, it’s important to keep an eye on geopolitical developments alongside on-chain data.

Key watch: Can SUI hold support between $1.40 and $1.45 and see a rebound in institutional investment next week?

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What could affect the price of SUI?

The future price of SUI depends on a balance between growing interest from big investors and ongoing increases in token supply.

1. Institutional Adoption – If exchange-traded funds (ETFs) get approved and companies keep buying SUI for their treasuries, demand could stay strong enough to absorb new tokens entering the market.
2. 2026 Roadmap – Sui plans to become a full developer platform with features like private transactions and fee-free stablecoins, which could make it more useful and attract more users.
3. Token Supply & Market Risks – Regular large token releases add selling pressure, and SUI’s price is sensitive to overall cryptocurrency market ups and downs.

Deep Dive

1. Institutional Demand vs. Token Unlocks (Mixed Impact)

Overview: Interest from big investors is a positive sign. Companies like 21Shares and Canary Capital have applied to the SEC to launch SUI ETFs. Public companies such as SUI Group Holdings have also invested millions in SUI tokens. This demand helps balance out the downside from scheduled token unlocks—like the planned release of about 43.69 million SUI (worth over $64 million) on January 1, 2026—which increase the number of tokens available to sell.

What this means: If ETFs get approved, it could bring in a lot of regulated investment money, which would be a strong positive for SUI. But the regular release of new tokens means there’s always extra supply that needs to be bought up to keep prices stable. How the market handles the January 1 unlock will be an important test for SUI’s price.

2. The "Sui Stack" Platform Evolution (Bullish Impact)

Overview: Mysten Labs plans to upgrade Sui from just a basic blockchain (Layer 1) into a full developer platform called "S2" or Sui Stack by 2026. This upgrade will include private transactions built into the protocol, a stablecoin called USDsui that can be sent without fees, and improved decentralized finance (DeFi) tools through something called Deepbook. The goal is to make it easier for developers to build on Sui and to support real-world financial activities.

What this means: If these plans succeed, more developers and users will join the network, increasing demand for SUI tokens to pay transaction fees and participate in staking. This is a strong long-term positive for SUI. Better usability and privacy features could help Sui compete with other smart contract platforms.

3. Market Sentiment & Technical Challenges (Bearish Impact)

Overview: SUI’s price tends to follow the overall crypto market. For example, recent political tensions caused a broad market selloff, pushing SUI down more than 10% in one day. Technically, SUI’s price at $1.47 is below important moving averages (7-day average at $1.71 and 200-day average at $2.69), indicating downward momentum. The Relative Strength Index (RSI) is 35.63, meaning SUI is oversold but hasn’t yet shown signs of recovery.

What this means: In the short term, SUI’s price will likely be influenced more by the overall crypto market and Bitcoin’s performance than by its own developments. The weak technical indicators suggest any price gains will face resistance. Until SUI can rise above $1.70, the price is likely to stay flat or decline.

Conclusion

SUI’s price in 2026 will depend on whether growing interest from big investors and new platform features can overcome the pressure from token unlocks and broader market challenges. For investors, patience will be important as the platform works on its ambitious plans.

Will SUI stay above $1.70 and use that as a launchpad for its next price increase?

What are people saying about SUI?

The SUI community is divided. Some are excited about its technology and future potential, while others are concerned about its recent price struggles. Here’s what’s making headlines:

1. A well-known analyst warns that SUI failed to break above a key price level and could drop sharply to $0.50. Bearish
2. A community supporter shares five reasons to be optimistic about SUI’s long-term growth, especially due to increasing interest from big investors. Bullish
3. The official Sui Network announces a major new hire from traditional finance, signaling a focus on attracting institutional investors. Bullish
4. A technical trader spots a likely short-term price drop setup with a clear stop-loss level. Bearish

Deep Dive

1. @CryptoPulse_CRU: Failed to Hold Key Price Zone, Targets $0.50 — Bearish

"The bearish scenario played out — $SUI failed to reclaim the level ($1.7–$1.9) and is now down 15%... Downside target looks like at $0.5"
– @CryptoPulse_CRU (29.7K followers · January 19, 2026)
View original post

What this means: This suggests that SUI couldn’t break above an important resistance price range, which could lead to a bigger price drop. Traders might lose confidence in the short term, pushing the price lower.

2. @Suiclopedia: Five Reasons to Be Bullish on SUI Long-Term

"1.) THE TECHNOLOGY... 5.) INSTITUTIONAL SUPPORT... Institutions are rushing into the ecosystem and scooping up as much Sui as they can."
– @Suiclopedia (1.3K followers · January 14, 2026)
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What this means: This highlights the strong fundamentals behind SUI, such as advanced technology, growing decentralized finance (DeFi) activity with over $1 billion in value locked, and increasing interest from big financial institutions. These factors could support SUI’s value over the long run.

3. @SuiNetwork: Key Hire from DTCC & Goldman Sachs — Bullish

"Renée Berman is joining the Sui Foundation as a Strategic Advisor... bringing experience from DTCC, Broadridge, Goldman Sachs & JPMorgan."
– @SuiNetwork (1.1M followers · November 19, 2025)
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What this means: Bringing in a seasoned professional from major financial firms shows Sui Network’s commitment to working with traditional finance. This could boost trust and attract more institutional investors, which is positive for SUI’s future.

4. @Inam_Az1: High-Probability Short-Term Price Drop Setup — Bearish

"Bias: Bearish (possible downside)... Invalidation (SL) 4H candle closing above $1.873"
– @Inam_Az1 (806 followers · January 15, 2026)
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What this means: This trader expects SUI’s price to drop soon but has a clear level ($1.873) that, if crossed, would prove this view wrong. This reflects cautious short-term trading sentiment.

Conclusion

The outlook on SUI is mixed. Long-term supporters focus on its strong technology and growing institutional interest, while short-term traders are concerned about price weakness and failed technical levels. The key price area to watch is between $1.70 and $1.90. If SUI can hold above this range, sentiment may improve. But if it falls below, deeper price declines could follow.

What is the latest news about SUI?

Sui's recent developments show a blockchain that’s growing stronger through increased interest from big investors and important technical improvements, even though it’s facing some challenges. Here are the key updates:

1. Big Investors Drive Weekly Crypto Gains (January 21, 2026) – Sui saw $5.7 million in investments during a week when the crypto market surged by $2.17 billion.
2. New Partnership with River for Cross-Chain Stablecoins (January 20, 2026) – This deal lets stablecoins move liquidity directly into Sui, making it easier to use assets across different blockchains.
3. Mainnet Upgrade Improves Transaction Security (January 19, 2026) – The latest software update boosts transaction reliability and adds new security rules for network validators.

Deep Dive

1. Big Investors Drive Weekly Crypto Gains (January 21, 2026)

What happened: In the week ending January 20, digital asset investment products attracted $2.17 billion, the largest weekly inflow since October 2025. While Bitcoin led the way, Sui-specific products brought in $5.7 million, showing growing interest from institutional investors. However, the market pulled back later in the week with $378 million in outflows due to geopolitical concerns and uncertain policies.
Why it matters: This is a positive sign for SUI because it shows that regulated investment funds are starting to recognize its potential, creating new demand. Still, the late-week sell-off reminds us that Sui’s price can be affected by broader market worries.
(The Daily Hodl)

2. New Partnership with River for Cross-Chain Stablecoins (January 20, 2026)

What happened: Sui teamed up with River, a protocol building a stablecoin system that works across multiple blockchains. This partnership allows River’s satUSD stablecoin to move liquidity directly into Sui’s network using Sui’s Omni-CDP technology.
Why it matters: This is good news for SUI because it improves its ability to work with other blockchains and makes it a more attractive place for decentralized finance (DeFi) projects. It also reduces reliance on traditional “bridges,” which can be slower or less secure.
(CoinMarketCap)

3. Mainnet Upgrade Improves Transaction Security (January 19, 2026)

What happened: Sui’s mainnet was updated to version 1.63.3 (protocol v107). This upgrade improves how transactions are finalized and fixes issues with rejected transactions. It also adds new rules that prevent validator nodes from signing transactions, enhancing security.
Why it matters: This update is neutral to positive for SUI. It helps fix technical problems that caused a six-hour network outage earlier in January, which is important for user confidence. While some security changes may centralize certain functions, they ultimately aim to make the network safer and more reliable.
(Binance)

Conclusion

Sui is at an important stage where it’s attracting serious investment while strengthening its technology. However, its progress still depends on how the overall crypto market performs. The focus on cross-chain features and network stability could help Sui stand out and reduce its price swings compared to other altcoins in the near future.

What is expected in the development of SUI?

Sui’s development is progressing with these key updates:

1. Token Unlock (February 1, 2026) – 43.5 million SUI tokens will be released, making up about 1.15% of the tokens currently available for trading.
2. Private Transactions (2026) – Sui plans to add built-in privacy features for transactions that don’t require users to opt-in.
3. Ecosystem & Institutional Growth (Ongoing) – Continued expansion of Bitcoin finance (BTCFi), stablecoin payments, and tools for developers and institutions.

In-Depth Look

1. Token Unlock (February 1, 2026)

What’s happening: On February 1, 2026, 43,530,000 SUI tokens will become available, representing roughly 1.15% of the circulating supply (TradingView). This is a planned event that increases the number of tokens available for trading.

Why it matters: This event is neutral overall. It might cause some short-term selling if token holders decide to cash out, but it also means more tokens will be available for trading and staking, which can help the network’s liquidity.

2. Private Transactions (2026)

What’s happening: Sui Network plans to introduce privacy features at the protocol level by 2026 (CoinMarketCap). This means transactions will be confidential by default, without users needing to take extra steps.

Why it matters: This is a positive development for SUI. Enhanced privacy can attract more users and developers who value confidentiality, potentially increasing the network’s usefulness and demand.

3. Ecosystem & Institutional Growth (Ongoing)

What’s happening: Sui is building out its “Sui Stack,” an integrated platform that includes Bitcoin finance (BTCFi) assets like tBTC and xBTC, expanding stablecoin payment options, and supporting institutional products such as the approved 2x leveraged SUI ETF (TXXS).

Why it matters: This growth supports real-world use and liquidity for SUI. Increasing Total Value Locked (TVL) and gaining institutional support strengthens the network’s position. However, competition with other Layer-1 blockchains remains a challenge.

Conclusion

Sui’s near-term outlook includes a scheduled token unlock, while its 2026 goals focus on adding privacy features and expanding its financial ecosystem. The question remains: will these efforts around privacy and institutional infrastructure drive the next wave of adoption?

What updates are there in the SUI code base?

Sui's software is continuously improving with updates that focus on making the network faster, safer, and easier for developers to use.

1. Mainnet Consensus & Security Upgrade (January 19, 2026) – Improves how transactions are finalized and limits validator roles to boost network security.
2. Mysticeti v2 Consensus Engine Rollout (November 6, 2025) – Combines validation and consensus steps to reduce delays by up to 35%, speeding up transactions.
3. Testnet Security & Tooling Update (June 29, 2025) – Requires encrypted communication and enhances developer tools, cutting setup times by 30-50%.

In-Depth Look

1. Mainnet Consensus & Security Upgrade (January 19, 2026)

What’s new?
This update (version 1.63.3, protocol 107) improves how transactions are confirmed on the main network. It fixes issues where rejected transactions could cause problems among validators and adds new rules to restrict how validators sign transactions. Specifically, validator nodes can no longer sign transactions themselves, and certain signature transactions can only be submitted through secure, designated channels.

Why it matters:
These changes make the network more reliable and secure, reducing the chance of errors or attacks. For users, this means transactions are confirmed more predictably and the network is stronger overall.
(Foresight News)

2. Mysticeti v2 Consensus Engine Rollout (November 6, 2025)

What’s new?
Mysticeti v2 is a big redesign that merges transaction validation and consensus into a single step. Previously, these were separate processes, which added delay. Now, a new system sends each transaction to one validator to coordinate, instead of broadcasting to all validators. Early tests showed this cut transaction delays by 35% in Asia and 25% in Europe.

Why it matters:
This upgrade makes SUI faster and more efficient, improving the experience for users doing anything from decentralized finance (DeFi) trades to gaming. Faster transaction finalization helps SUI compete better with other networks.
(CoinMarketCap)

3. Testnet Security & Tooling Update (June 29, 2025)

What’s new?
This testnet update (version 1.51.2) requires all validator communications to use TLS encryption, which is a standard security measure. It also introduced experimental “Party” objects that allow new types of transactions involving multiple signers—useful for DeFi and gaming. Additionally, improvements to developer tools reduced project setup times by 30-50%.

Why it matters:
While these features are currently only on the testnet (a testing environment), they show a strong focus on security and making development easier. This is good news for the long-term growth of the SUI ecosystem, as it encourages more developers to build on the platform.
(CoinMarketCap)

Conclusion

Sui is steadily strengthening its core technology by improving security, speeding up transactions, and enhancing developer tools. These updates lay a solid foundation for wider adoption. Looking ahead, upcoming privacy features planned for 2026 could further build on this progress and make the network even more appealing.