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$SUI is attempting to hold a crucial area as support amid the recent market downturn. Some analysts suggest the altcoin’s price is retesting a make-or-break level that will determine the direction of its next big move.
$SUI Hits Two-Month Low
On Thursday, $SUI is retesting the local range lows after an 8% daily drop from the $3.40 area to a key support level. The recent market pullbacks have momentarily halted most bullish rallies, sending leading cryptocurrencies like Ethereum (ETH) to an eight-week low of $3,800.
Now, $SUI’s rally, which was fueled by institutional interest, Digital Asset Treasuries (DATs), and positive developments for the network, has declined over 21% in the weekly timeframe.
The cryptocurrency has seen a strong three-month rally following its early Q3 breakout to its multi-month high of $4.44. The altcoin has hovered between the $3.10-$4.00 levels over the past three months, attempting to break out of this range multiple times.
Last week, $SUI’s price retested this area for the third time during this period, but has since been rejected from the range highs after failing to hold the $3.80 mark as support.
Market watcher Daan Crypto Trades highlighted that the cryptocurrency has been “stuck” inside the $3.10-$4.30 range since May, briefly losing the support area during the June pullback.
According to the trader, the five-month consolidation should eventually lead to a big price move out of the range. “As we approach the range low/support, it’s back on my radar for a potential range play,” he noted, adding that it would need a strong bounce from this area to hold the macro range.
On the contrary, Daan suggested that “If it sits there and doesn’t do anything, then that’s a red flag,” as it would risk losing the crucial multi-month support and retracing toward the June lows.
Price Retests Make-Or-Break Level
Amid the retracement, $SUI is also retesting another crucial support. As multiple analysts pointed out, the cryptocurrency is trading within a textbook ascending triangle pattern on a higher timeframe.
Notably, the price has been compressing within the pattern’s upper and lower boundaries since early Q2. Throughout the multi-month consolidation, each time the altcoin has bounced from the ascending support, it has retested the flat upper trendline.
Ali Martinez highlighted that a successful breakout from the bullish formation’s resistance line around the $4 barrier would set the stage for a retest of its all-time high (ATH) level of $5.35 and an overall 75% rally toward the $7 area.
Similarly, analyst Sjuul from AltCryptoGems affirmed that “it’s really time to pay attention” to the bullish formation, as the price compression continues and a break from the pattern seems imminent.
Per the post, $SUI’s price must hold the triangle’s rising lower trendline to be able to attempt to break out of the pattern again. Failing to maintain this key support, currently located around the $3.10 area, could invalidate the setup and lead to a retest of the $2.40-$2.90 zone.
As of this writing, $SUI is trading at $3.15, a nearly 10% decline in the monthly timeframe.
