Following a dip below the crucial $3.00 threshold, SUI is currently testing a pivotal level that could either propel or hinder its rally. Despite recent setbacks, some analysts suggest that the altcoin may be gearing up for new highs.
This week, SUI slipped below the $3.00 mark amidst market fluctuations driven by geopolitical tensions between Israel and Iran. Over the past three days, the cryptocurrency experienced a 7% decline, reaching a two-month low of $2.68 on Wednesday morning before bouncing back. Since its breakout in late April, SUI has been fluctuating between $2.33 and $4.10, with prices recently lingering near the upper end of this range.
Importantly, the altcoin ended a prolonged downtrend after surpassing its descending resistance in late March, which had propelled its rise to around $4.00. Analyst Crypto Bullet indicated on Wednesday that SUI might be poised for a similar upward movement. The analyst noted that SUI had broken down a falling wedge pattern and bounced off the yearly Exponential Moving Average (EMA) and Moving Average (MA) during March and April, facilitating the downtrend breakout that led to its peak in May.
Currently, the cryptocurrency is revisiting the EMA and MA while forming a new falling wedge pattern targeting the $5.00 to $5.50 range. Crypto Bullet remarked, “This is where SUI is gonna establish a Higher Low and soon rise to a New ATH.” Earlier this month, the analyst also pointed to a one-year rising wedge pattern that sets the $8 to $10 levels as the next significant target for SUI.
Meanwhile, trader Coinvo highlighted that SUI is retesting a critical make-or-break level at $2.80, which served as both support and weak resistance earlier this year. Maintaining this level is essential for the cryptocurrency's rally; a drop below could push prices toward the $2.33 range and risk a potential retest of the $2.00 support. Conversely, stability at this level could facilitate a recovery of the $3.00 mark and enable a continuation of the bullish rally.
As noted by analyst Rekt Capital, the performance in June will be crucial for SUI's mid-term trajectory. It is also worth mentioning that SUI has established a re-accumulation range similar to the one seen in late 2024, when it consolidated around $3.39-$3.78 for weeks before achieving a weekly close above this range and setting the stage for its all-time high breakout.
This time, however, SUI's consolidation has been less orderly, failing to secure a weekly close within the range for two consecutive weeks. To sustain its Monthly Bull Flag and position itself for higher price levels, SUI must reclaim the $3.39 area in the coming weeks. As of now, SUI is trading at $2.79, reflecting a 3.3% decline on the daily chart.
