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SUI, the Sui Network’s native token, is retesting a key support level after surging near the $2.40 mark. As the cryptocurrency attempts to hold its current range, some analysts suggest that a breakout is imminent for the token’s price.
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SUI Eyes Key Resistance
On Monday, SUI saw its price surge 7% near a key resistance level, fueling bullish sentiment among investors. The cryptocurrency has been one of the leading tokens of the cycle, outperforming most of the market during the 2024 pullbacks.
Nonetheless, the cryptocurrency has shredded over 57% of its gains in the past few months, falling from its $5.31 January all-time high (ATH) to the $2.20 range. After losing the $4 support zone, SUI has hovered between the $2.1-$3.5 zone, briefly falling below $2 last Tuesday.
Since reaching its 4-month low, SUI has recovered 7.8% in the weekly timeframe, climbing to $2.37 today. According to analyst Ted Pillows, its recent price action has completed an inverse head and shoulder pattern, with the price potentially moving toward the $2.45 breakout level.
A sustained surge above this level could send the token to retest the recently lost $2.6 support. To the analyst, “a big breakout is just a matter of time,” as institutions are taking interest in the token.
Notably, Canary Capital filed a Form S-1 for an SUI spot exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC) on March 17, fueling yesterday’s 7% rally.
This move follows Canary’s March 6 filing to register a trust for an SUI-based fund in Delaware. On the same day, Sui announced it had partnered with World Liberty Financial (WLFI), the US President Donald Trump’s crypto venture, to include the token in its “Macro Strategy” token reserve.
$2.26 Retest: Breakout Or Breakdown?
Crypto analyst Ali Martinez suggested that the token is ready for a 15% move. In an X post, he highlighted a one-week ascending triangle pattern forming in SUI’s chart, with the ascending support line currently at the $2.26 mark and $2.40 set as a crucial resistance level.
According to the analyst, the 15% move’s direction will be determined by a close above the resistance line, which would send the price to the $2.80 price range, or a close below the support level, which could see the cryptocurrency plunge to $1.90.
Since hitting its daily high of $2.37, SUI has retraced to the pattern’s support level, briefly falling to $2.22 before bouncing back above the ascending line. Despite the small recovery, the token has struggled to hold above the crucial level, hovering between $2.23-$2.26 throughout Tuesday morning.
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Meanwhile, market watcher Pushpendra Singh highlighted SUI’s current level as a “strong buying zone.” The $2-$2.3 price range served as a key breakout level during the November post-US election pump.
Moreover, its recent retest and bounce from this level suggests a “breakout to the upside could be imminent.” According to the post, the cryptocurrency eyes the $7 target in the mid-term.
As of this writing, SUI trades at $2.25, a 5% decline in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
