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After recovering from the recent pullbacks, SUI is attempting to reclaim a crucial resistance, which could trigger a breakout from its bullish formation. Some analysts believe that the cryptocurrency’s imminent rally could target significantly higher levels.
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SUI Eyes Key Area Reclaim
On Thursday, SUI has surged more than 10% from its $2.70 support toward the crucial $3.00 barrier. The cryptocurrency has been attempting to reclaim this area throughout Thursday, hovering between the $2.95 and $3.08 levels.
Notably, the altcoin ended its multi-month downtrend after breaking above its descending resistance at the end of March, fueling its rally toward the $4.29 high in May. Since the Q2 breakout, SUI has been trading within the $2.33-$4.10 range.
Nonetheless, the June pullbacks, driven by the global geopolitical tensions, sent the token below the $3.00 mid-range support to its local low of $2.22 nearly two weeks ago, before reclaiming the $2.80-$2.90 area.
Amid the start-of-month retracement, the altcoin briefly lost its local range, but the Wednesday pump reignited bullish sentiment and potentially set the stage for a rally continuation.
Analyst Alex Clay noted that SUI is currently testing the confluence of the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) resistances alongside its bullish flag resistance.
According to the chart, the cryptocurrency has been trading within a bullish flag formation since May, and lost the technical indicators throughout the June pullbacks. Now, the indicators and the patterns’ upper boundary sit as resistance around the $3.00-$3.10 area.
If the altcoin reclaims these key levels, the analyst considers that a rally to the $5.00 resistance would be “an easy trade.”
Is A Breakout To $10 Nearby?
Analyst Marcus pointed out that SUI “just snapped back from the 0.786 Fib zone sharp, clean and confident.” He added that the cryptocurrency’s structure held despite the correction, which confirmed a “healthy pullback, not a breakdown.”
To the analyst, the current bounce could be the higher low that sets the stage for SUI’s next major move, as “all signs point to a setup that’s not done yet.”
Meanwhile, market Watcher Crypto Yhodda affirmed that SUI is “in a big accumulation right now,” pointing to an eight-month triangle formation. According to the analyst, a breakout from this pattern “can help it reach the dream target of $10.”
Similarly, Kaleo highlighted SUI’s bounce on its trading pairs against Bitcoin (BTC) and USD. He explained that there are many similarities between the base the altcoin is currently building and the base from the April lows that propelled the token to its local high.
The cryptocurrency bounced off the High timeframe (HTF) ascending support line on both occasions, suggesting a massive rally could be ahead. To the analyst, the $10 target is “a magnet.”
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Crypto Batman also highlighted this ascending support, noting that the recent pullback marks the third time the cryptocurrency has bounced from it since August. Following the previous two retests, the token rallied for weeks toward higher levels, signaling that a breakout could be nearby.
Additionally, he considers that SUI displays a “solid-looking setup,” as it is trading above the key $2.30-$2.40 area that has served as resistance and support on the weekly chart.
As of this writing, SUI trades at $3.09, a 15% increase in the weekly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
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