"Fall from $5.35 to $0.90 is not the end"...Sui, the stage is set for a reversal after a 70% crash

▲ Sui (SUI)/ChatGPT Generated Image

Sui (SUI) has fallen out of market attention due to a sharp price drop, but an analysis suggests it is an undervalued large-cap cryptocurrency setup, with institutional infrastructure, stablecoin foundation, and protocol upgrades progressing simultaneously. While the recent downtrend clearly indicates a bearish flow, internally, the network is continuously building institutional entry points and liquidity channels.

NewsBTC reported on May 21 (local time) that crypto analyst Michaël van de Poppe evaluated SUI as one of the least discussed setups in the current crypto market. He explained that while market attention focused on SUI's price dropping from $5.35 to about $0.90, a larger infrastructure build-out was ongoing in the background.

Van de Poppe highlighted that SUI becoming simply cheaper was less significant than the continuous progress of institutional rails, liquidity channels, and protocol-level upgrades even during the bear market. He cited the listing of the fifth spot crypto ETP in February 2026, the launch of CME futures, and three US staking ETFs from Grayscale, Canary Capital, and 21Shares as key examples.

He also mentioned that Nasdaq-listed SUIG staked all 108.7 million SUI it held, the launch of USDsui through Stripe's Bridge subsidiary, cumulative stablecoin transfer volume surpassing $1 trillion in March, the launch of Hashi supporting native Bitcoin (BTC) collateral, and the participation of over 20 institutions on the first day. The Mysticeti consensus upgrade was presented as a change that increased checkpoints per second from 1 to 4.

Van de Poppe disagreed with the interpretation that SUI could become a forgotten chain after a price correction. He stated, “This is not a narrative chain. Rails are being laid,” adding, “It makes absolutely no sense to claim that the chain is becoming a ghost chain.” He also added that all chains experienced the same shock after October 10, and the overall market collapsed.

Network metrics were also presented as evidence. Van de Poppe mentioned SUI's total user count of 232 million, cumulative transactions of 1.5 billion, a stablecoin base of approximately $500 million maintained despite a decrease in total value locked (TVL), and continuous network revenue since launch. He pointed out that while SUI's TVL decreased from $2 billion to $500 million, the price of the underlying asset also fell by about 70% during the same period, which should be considered separately.

He argued that the decrease in TVL should not be simply interpreted as funds exiting the ecosystem. He explained that the drop in SUI's price accounts for a significant portion of the TVL decrease, and the slowdown in ecosystem activity is linked to a broader market recovery of confidence rather than the failure of individual chains.

From a chart perspective, a potential rebound was also suggested. Van de Poppe analyzed that accumulation signals are appearing on the SUI/BTC daily chart after a long-term decline, and a bullish divergence has been confirmed near recent lows. On this chart, SUI/BTC is around 0.000136 BTC, with an accumulation zone below the current level and a potential resistance zone around 0.000207 BTC above it.

He said, “The chart looks great from an accumulation perspective,” adding, “Protocol updates continue to be announced, and the bullish divergence seen in the Bitcoin pair looks strong and valid.” He further added that a first breakout has already occurred, followed by a mean reversion adjustment, and the current zone is an area worth considering for accumulation.

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