CETUS Price Pops 25% as DEX Discloses Sui-Backed Bailout, Plans to Fix Exploit

Key Takeaways

• Cetus will use its reserves and a loan from the Sui Foundation to ensure 100% recovery for affected users.
• CETUS broke out of a falling wedge pattern on the 4-hour chart, supported by a bullish MACD crossover.
• MFI recovery from oversold levels and a bullish engulfing candle suggest the rally may extend toward $0.24.
• Despite the rebound, Cetus’s TVL remains below pre-exploit levels, indicating cautious investor sentiment.

CETUS, the native token of Cetus Protocol, the largest decentralized exchange (DEX) on the Sui blockchain, has jumped by 25% in the past 24 hours.

The rally comes on the heels of the team’s announcement that it will fully reimburse users affected by last week’s exploit. The pledge appears to have quickly restored investor confidence.

Before the announcement, CETUS was trading at around $0.13. Just hours later, the price jumped to $0.16.

Here’s a look at what triggered the move and what could come next for CETUS.

Cetus Protocol Update Sends Token Soaring

On Tuesday, May 27, CCN reported details of the Cetus Protocol exploit and how the project has initiated recovery efforts.

Later that day, the protocol released an update, revealing its decision to take responsibility for the loss.

According to the announcement, Cetus said it would leverage its cash reserves and token treasuries to compensate affected users.

In addition, the DEX disclosed that it will secure a loan from the Sui Foundation to cover the losses.

This proactive stance appears to have played a key role in restoring community trust, as reflected in the recent surge in CETUS’ price.

“We have great news. Using our cash and token treasuries, we are now in a position to fully cover the stolen assets currently off-chain if the locked funds are recovered through the upcoming community vote. This includes a critical loan from the Sui Foundation, making a 100% recovery for all affected users possible,” Cetus wrote. 

From a technical standpoint, the 4-hour chart shows that the CETUS price broke out of a falling wedge pattern.

This breakout marked the beginning of the current rebound.

Following the breakout, the Moving Average Convergence Divergence (MACD) indicator flashed a bullish crossover.

At the time of writing, the MACD histogram remained in positive territory, suggesting that bullish momentum was building.

CETUS could climb beyond $0.15 if this buying pressure sustains, potentially eyeing higher resistance levels.

CETUS Price Prediction: Recovery Continues

The daily chart’s CCN analysis revealed that CETUS was previously in oversold territory, as shown by the Money Flow Index (MFI).

The MFI, which measures buying and selling pressure, identified a May 26 reading of 5.93—well below the oversold threshold of 20.

Since then, the indicator has risen, contributing to a bullish engulfing candle formation. This bullish reversal pattern suggests that buying pressure has returned and could set the stage for an extended rally.

At press time, CETUS faces resistance around $0.17. A successful breakout above this level could drive the token toward $0.24, aligning with the 0.618 Fibonacci retracement level (golden pocket ratio).

However, if bulls fail to overcome the resistance, the CETUS price might retreat to $0.12, invalidating the bullish thesis.

What Else Is Happening?

Despite the ongoing price rebound, Cetus Protocol’s Total Value Locked (TVL) remains well below its May 21 levels.

This suggests that, although the project’s swift response has helped stabilize sentiment, full user confidence has not yet been restored.

However, if the recovery efforts continue smoothly and users begin to recover their assets, trust in the protocol could gradually rebuild.

In that scenario, CETUS price may fully recover, and the TVL could trend upward again.