Key Highlights:
- Sui price formed an inverse head-and-shoulders pattern, targeting a breakout toward $2.80–$3.50.
- The top analyst sees a major altseason brewing, with SUI possibly leading the charge.
- Stablecoin inflows show strong interest, but falling volume and high shorts signal caution.
Sui price dropped 3.3% in the last 24 hours, reaching $2.21 as of 10:14 a.m. EST. Trading volume also declined by 4.2%, falling to $934 million.
This price drop happened as top analysts predicted altcoins are gearing up for a massive move. Can SUI reclaim the $3.5 level on the heels of this alt-season hype?
Prominent crypto analyst Cryptojack recently predicted on X that the market is gearing up for a “major altcoin rally”.
He noted that the total altcoin market cap has been on “4 months of painful correction.” However, it is now ready for a breakout.
According to Cryptojack’s chart, if such a breakout happens, the entire altcoin market will likely double quickly. Technical analysis suggested that Sui price might probably be leading the charge.
Sui Price Flashes A Bullish Reversal Signal
The 12-hour price chart showed SUI was bullish with a classic inverse head and shoulders pattern. This was a textbook reversal pattern that often signals a big breakout for the uninitiated.
The left shoulder formed around mid-March, and the head dipped to a low of $1.71 in early April. Also, the right shoulder wrapped up by mid-April.
The neckline at $2.20 was breached multiple times previously. This confirmed it as a significant resistance level. The chart indicated a 27.36% breakout potential, aiming for $2.80. This projection aligns with a bullish Sui price outlook.
But here’s the kicker: the chart also showed two supply zones above the current price—$2.60 and $3.18. This represented 27.36% and 43.56% gains, respectively.
If SUI price surpasses these levels, it could aim for the $3.5 target. This aligned with the 200-day simple moving average (SMA), making the goal achievable.
The relative strength index (RSI) hovered around 49.48, showing neutral momentum. However, the volume bars cast doubt on the current bullish thesis—more on that later.
SUI Volume Is Dropping — Are the Whales Ghosting?
While the price action is positive, gaining 19% in the last 7 days, there’s a slight red flag. Data from Santiment showed that the token’s volume has declined since April 7. Despite this, the price rose from $1.94 to $2.19, reflecting resilience in SUI.
This was a bearish divergence, where the Sui price pumped. However, the volume didn’t support it, likely due to fewer traders participating in the rally.
In financial markets, volume acts as the fuel for a rally. Also, it could signal that SUI whales are staying on the sidelines when it dries up. They might be waiting for a better entry point to re-enter the market.
Additionally, low volume on a price increase can sometimes signal a lack of conviction. Furthermore, if the buyers don’t step up, Sui price might see a pullback to $1.81. This could invalidate the inverse head and shoulder pattern.
The Coinglass Crypto Derivative Visual Screener (CDVS) tracks the rate of change in open interest (OI) relative to price. It indicated that traders are shorting Sui.
SUI liquidation map also supported a bearish outlook. There’s over $45 million worth of shorts compared to $23 million longs over the past 24 hours.
This trend is consistent in the weekly and monthly timeframe. This signaled that bearish sentiment is currency dominant in the market as traders anticipate further downside potential for the asset.
Stablecoin Inflows Show SUI Is Eating Good
Artemis reported that SUI recorded the highest stablecoin inflows among all blockchains in the past 24 hours. A substantial $18.1 million flowed into the network, showcasing its growing appeal.
Stablecoin inflows are significant because they often indicate major players are accumulating liquidity. This suggests they are preparing to make substantial moves in the market.
Such inflows strongly indicate growing confidence in SUI’s ecosystem. This is particularly significant as it steadily gains momentum in the DeFi and NFT sectors.
With this kind of capital flowing in, Sui price could have the firepower to break through those supply zones. Going forward, it could make a run for $3.5.
Stablecoin inflows hint that the recent price dip could present a buying opportunity. The “chads” might be gearing up to stack their bags for potential gains.
The road for SUI to touch the $3.5 mark is not straight. The inverse head and shoulders pattern is a solid bullish signal. Also, the stablecoin inflows showed that the big boys are paying attention.
However, the dropping volume is a bit of a momentum killer. Sui Price might see a fakeout before the real breakout if the buyers don’t show up with profound conviction.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
