Crypto Market Turns Bearish: SUI Plunges 5% as Traders Close Leveraged Positions

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Crypto Market Turns Bearish: SUI Plunges 5% as Traders Close...

Dimitar Todorov
12 August, 2025, 11:16
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Altcoins Face Steep Losses as Market Sentiment Turns Bearish – SUI Price Risks Deeper Decline

The cryptocurrency market started the week under intense selling pressure, with most major altcoins and Bitcoin trading in the red. Despite a strong rally over the weekend, the broader digital asset sector is now experiencing a sharp pullback, raising concerns over further downside momentum.

Bitcoin Slips Below $119K After Weekend Surge

Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, has dropped more than 2% in the last 24 hours, falling below the $119,000 mark after touching $122,000 over the weekend. The sudden downturn reflects renewed selling activity and profit-taking among traders after the latest bullish run.

Ethereum Holds Above $4,200 – XRP Slides

Ethereum (ETH) remains the strongest-performing major altcoin, holding its price above the $4,200 level despite the bearish environment. In contrast, XRP is trading around $3.15, marking a 3.6% decline over the past 24 hours.

SUI Leads Declines with Heavy Losses

Among the top losers, SUI — the native token of the Sui blockchain — has fallen by more than 5% in the past day, now trading at $3.6846. The drop follows similar losses seen across other leading altcoins, with investors pulling back amid heightened market uncertainty.

Data from CoinMarketCap reveals that SUI’s open interest (OI) has plunged 15% to $1.79 billion, signaling that traders are closing leveraged positions. Additionally, funding rates — which determine the cost of holding long positions — have dropped sharply to 0.0083%, down from their July peak of 0.075%. This indicates a significant cooling in bullish sentiment as traders shy away from aggressive leveraged bets.

Impact of Sygnum’s Expansion into Sui Blockchain

Bitcoin Plunges to $101,000 – 2.21% Drop Shakes Crypto Market as MACD Signals Bearish Trend

The market retreat comes just days after Sygnum, a Swiss-regulated digital asset bank, announced the expansion of its services to include custody, trading, and lending products linked to the Sui blockchain. While the news initially sparked optimism, the current macro bearish conditions have overshadowed the development.

Technical Outlook – SUI Price Could Test $3.20 Support

The SUI/USD 4-hour chart is currently bearish and efficient, suggesting that liquidity was captured to the upside before a potential continuation lower.

Relative Strength Index (RSI): At 43, SUI is approaching oversold territory, meaning a sharper decline could push it into extreme bearish momentum.
MACD: The moving average convergence divergence lines are on the verge of crossing into negative territory, reinforcing the bearish trend.

If the downtrend persists, SUI could retest the $3.20 support zone within hours. This level could serve as a potential bounce point for a short-term recovery. However, a break below $3.20 could expose the token to a deeper drop toward the July low of $2.65.

Potential Recovery Scenario

If overall market sentiment improves, SUI could reclaim the $4.00 weekend high and aim for the next resistance at $4.43. This scenario would require a rebound in Bitcoin and stronger inflows into the broader altcoin market.

Market Takeaway: The cryptocurrency market is entering the week on a defensive note, with altcoins facing steeper losses than Bitcoin. The next few trading sessions will be crucial for determining whether the sell-off extends toward key support zones or if buyers step in to capitalize on discounted prices.