SUI is trying to retain key areas as support amid the recent market slump. Some analysts suggest that Altcoin’s price is retesting the make or break level that determines the direction of the next big movement.
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SUI hits a 2 month low
On Thursday, SUI retested its low local range after a daily drop from an area of $3.40 to a major support level by 8% each day. The recent market pullback has temporarily suspended most bullish gatherings, sending major cryptocurrencies like Ethereum (ETH) to an eight-week low of $3,800.
Currently, SUI gatherings, driven by institutional benefits, the Department of Digital Assets Treasury (DATS), and positive developments in the network, have declined by more than 21% in the weekly time frame.
In cryptocurrency, we’ve seen a strong three-month rally following an early third quarter breakout, a month-high of $4.44. Altcoin has hovered between the $3.10-$4.00 levels over the past three months, attempting to escape from this range multiple times.
Last week, the SUI price retested the area for a third time during this period, but was subsequently rejected from the highs in the range after not retaining the $3.80 mark as support.
Market Watcher Daan Crypto Trades highlighted that cryptocurrencies have been “stuck” within the $3.10-$4.30 range since May, and will temporarily lose support areas during the pullback in June.
According to traders, a five-month consolidation should ultimately lead to a large price movement from the range. “When I approached low range/support, I returned to the radar for potential range play,” he pointed out, adding that a strong bounce from this area is needed to retain the macro range.
On the contrary, Dern suggested, “If you sit there and do nothing, it’s a red flag.”
Price retests makeup or break levels
During the retracement, SUI is retesting another important support. As several analysts have pointed out, cryptocurrencies trade within textbooks rising triangle patterns in higher time frames.
In particular, since the beginning of the second quarter, prices have been compressed within the upper and lower limits of the pattern. Throughout the multi-month integration, we retested the trendline on the top of the flats each time Altcoin bounced off the rising support.
Ali Martinez stressed that a successful breakout from the bulls’ resistance over the $4 barrier would be the stage for a retest at a $5.35 record high (ATH) level and a 75% rally to the $7 area.
Similarly, AltCryptogems analyst Sjuul has asserted that “it’s really time to pay attention” as price squeezes continue and a break from the pattern appears to be imminent.
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According to the post, the price of the SUI should keep a rising trend line of triangles to try and get out of the pattern again. Failure to maintain this major support, which is currently around the $3.10 area, could disable the setup and lead to a retest of the $2.40-$2.90 zone.
At the time of this writing, SUI is trading at $3.15, with a nearly 10% drop in the monthly period.
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