An Adjustment at This Level May Occur First

SUI has emerged as a prominent altcoin this cycle, aiming for the significant $4.00 level following its recent price rally. As it regains essential support, analysts indicate that this cryptocurrency could benchmark a vital point before its anticipated growth.

Related Insights

SUI Set for 17% Increase

In the past fortnight, SUI has surged nearly 85%, overcoming the pivotal $3.80 mark and recovering from a prolonged downtrend. During the Q1 market correction, SUI lost crucial support levels and retraced over 68% from its January peak of $5.35, dropping to a six-month low of $1.71.

In March, it attempted to reclaim the critical $3.00 threshold, influenced by reports of institutional interest, but was unable to sustain the breakout.

Prior to its recent token release, SUI’s price climbed from $2.11, breaking past the $3.00 resistance for the first time since February, reaching a two-month peak of $3.87.

Following the unlocking of 88.34 million SUI tokens, valued at approximately $300.4 million, on April 30, the cryptocurrency experienced an 8.5% drop, declining from $3.51 to $3.21.

On Monday, SUI’s value increased by 5.2%, regaining the $3.40 support level as recent selling pressure eased. Analyst AMCryptoAlex suggests that if Bitcoin maintains the $94,000 level, SUI could reach the $3.90-$4 resistance threshold post-unlock.

In parallel, analyst Lennaert pointed out that after retesting the $3.20-$3.25 support area, SUI could continue its positive trend.

“If momentum shifts in our favor, we could quickly test previous highs. SUI has repeatedly shown that it doesn’t take much to achieve significant gains. The team is making consistent progress, and it’s rapidly becoming one of the most promising ecosystems,” the analyst noted.

Is a $3.25 Retest on the Horizon?

Analyst Sjuul from AltCryptoGems indicated that SUI might be forming a Power of 3 (Po3) pattern on a shorter timeframe. This Po3 pattern breaks the price cycle into three segments: accumulation, manipulation, and distribution.

In the first phase, consolidation occurs near recent highs following significant price movement. The manipulation phase sees prices dip below the support level established in the accumulation phase, trading within a range beneath the lost zone. The last phase involves a strong price breakout as momentum builds and new market participants enter.

Related Insights

According to the analyst, SUI began the accumulation phase following its recent surge, expected to hover between $3.25 and $3.85 in the coming days. After a price decline on Sunday, the cryptocurrency entered the second phase, dipping below the lower range and trading near that level throughout the day.

Since rebounding to the $3.25 mark today, SUI appears to have transitioned into the distribution phase, potentially testing the $3.25 support before aiming for the $4.00 resistance. “Keep an eye out for a potential retest of that support level or nearby, as there may be a subsequent expansion,” he stated.

At present, SUI is trading at $3.46, reflecting a 56% increase over the monthly timeframe.

Featured Image from Unsplash.com, Chart from TradingView.com