SUI, one of the leading altcoins of this cycle, is now eyeing the key $4.00 barrier following its significant price surge. As it has reclaimed important support levels, analysts are suggesting that this cryptocurrency may retest a crucial level before its next expansion.
SUI Eyes 17% Jump
Over the past two weeks, SUI has surged nearly 85%, crossing above the critical $3.80 mark and recovering from a multi-month downtrend. During the market retraces in Q1, SUI experienced a loss of key support levels and saw a dramatic retracement of over 68% from its January high of $5.35 down to a six-month low of $1.71.
In March, the cryptocurrency attempted to reclaim the important $3.00 level, driven by institutional adoption news, but was unable to confirm the breakout.
Prior to a recent token unlock, the price of SUI rose from $2.11 to reclaim the $3.00 resistance for the first time since February, culminating in a two-month high of $3.87.
However, following an unlock of 88.34 million SUI tokens, valued at approximately $300.4 million on April 30, the bullish momentum slowed, with the cryptocurrency facing an 8.5% retrace from a high of $3.51 down to $3.21.
On Monday, SUI’s price experienced a jump of 5.2%, recovering the $3.40 support level as selling pressure decreased. Analyst AMCryptoAlex has indicated that the altcoin could target the $3.90 to $4.00 resistance if Bitcoin maintains the $94,000 threshold.
In the meantime, analyst Lennaert remarked that SUI could continue its bullish trajectory after testing the $3.20 to $3.25 support zone and bouncing back from it.
“If momentum flips, we’ll be testing the highs in no time. SUI has consistently demonstrated that it doesn’t require much to experience significant price pumps. The development team is actively building, and SUI is emerging as one of the most promising ecosystems,” the analyst concluded.
Is A $3.25 Retest Coming?
Analyst Sjuul from AltCryptoGems suggested that SUI might be forming a Power of 3 (Po3) setup in a low timeframe. The Po3 pattern divides price cycles into three distinct phases: accumulation, manipulation, and distribution.
During the accumulation phase, consolidation occurs near recent highs following a strong price performance. The manipulation phase sees the token’s price drop below the support level established during the accumulation phase and trade within a restricted range. The distribution phase entails a strong price breakout, driven by momentum as market participants flock to enter.
According to the analyst, SUI commenced the accumulation phase after the latest breakout, hovering between the $3.25 and $3.85 price range. Following a price drop on Sunday, the cryptocurrency dropped below the range’s lower boundary, trading near that level throughout the day.
Having recovered the $3.25 mark, SUI appears to have entered the distribution phase, which may involve a test of the $3.25 support level before making a move toward the $4.00 resistance. “Watch for a retest of that support level — or something close — as we may see an expansion afterwards,” he noted.
As of this writing, SUI is trading at $3.46, reflecting a 56% increase over the past month.
