Amid recent market volatility, SUI is attempting to hold key levels as support following a breakout from local resistance. Some analysts have suggested that if momentum holds, the altcoin could be preparing for a 50% rally towards the next major resistance level.
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SUI recovers major support zone
On Tuesday, SUI rebounded from the recent market selloff and retested key areas as support after breaking out of a one-month downtrend line. The altcoin traded between $2.30 and $3.00 after a correction on October 10, when the cryptocurrency at one point fell more than 87% to $0.50.
However, a pullback in early November pushed prices below the local range and to the lowest level in seven months. Last week, SUI closed below the $2.00 barrier for the first time since April and briefly tested $1.80 territory.
After rebounding from this zone, the altcoin soared above $2.00 and retested this level as support over the weekend. As a result, SUI price hit a one-week high of $2.20 on Monday to start the new week, before reversing alongside the majority of the market on Tuesday morning.
Amid the recovery, analyst Ali Martinez recently highlighted that the TD Sequential indicator is giving a buy signal for the cryptocurrency, suggesting a bottom is in and a rally to higher levels could be next.
The analyst later confirmed the buy signal, adding, “Continued buying pressure here could push the stock to $3 or even $4.” Adding to the potential momentum, Sui Network announced a partnership with exchange Crypto.com and the Sui Foundation, an organization that helps adopt and advance the ecosystem.
According to the announcement, the exchange will begin supporting SUI’s regulated custody and liquidity, providing financial institution customers with “a secure and compliant way to store, manage, and access deep SUI liquidity.”
Downtrend breakout eye 50% up
Market watcher Daan Crypto Trades gave a broader outlook, noting that the cryptocurrency continues to trade within its large high timeframe (HT) area and is currently retesting the make-or-break zone.
Notably, SUI has been hovering between the $2.00 and $4.00 levels for most of the cycle, with the lower end of that range acting as a major support zone since late 2024. Currently, the price is “initially holding at this higher low” but will need to show short-term strength to break out of this area.
According to the post, the altcoin has also broken the one-month diagonal resistance level, which could push the price back to pre-November pullback levels. Currently, SUI price is retesting the downtrend line as support, and the correction could turn into a deviation, prompting a rally above $2.30.
“This to me is a solid sign of strength that a bigger reversal could be on the horizon,” the trader added. Analyst Crypto Kaleo similarly highlighted recent performance and asserted, “If SUI breaks out of a major downtrend, there will be a big crash.”
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As he pointed out, the cryptocurrency broke out of a similar downward trend during the May and July rally, surging more than 50% in less than a week. Therefore, if the altcoin maintains its current levels, its price could shoot up to the $3.00 wall in the short term.
Nevertheless, he cautioned that the previous two breakouts also saw some volatility after the initial move, suggesting a possible retest of the downtrend line before the next leg moves higher.
At the time of writing, SUI is trading at $2.07, down 3.8% on a daily basis.
Featured image from Unsplash.com, chart from TradingView.com