Key Takeaways:
SUI confirms breakout from an inverse head-and-shoulders pattern, signaling bullish momentum.
A sustained move above $3.08 opens the door for a rally toward $3.55 and $3.89.
Support lies at the neckline; a drop below key moving averages could negate bullish momentum.
SUI, the native token of the Sui Network, has confirmed a breakout from a classic inverse head-and-shoulders pattern, setting the stage for a potential move toward the $3.89 mark. The breakout comes amid renewed crypto market strength, led by Bitcoin’s surge to a new all-time high of $116,511.
As of the latest data, SUI is trading around $3.48, up more than 11% in the past 24 hours. The price move was driven by a sharp rebound from the 20-day exponential moving average (EMA) at $2.92 and a decisive break above the 50-day simple moving average (SMA) at $3.08.
Technical indicators support the bullish outlook. The EMA is starting to trend upward, and the relative strength index (RSI) has moved into positive territory, indicating renewed buying pressure. If bulls sustain the price above the 50-day SMA, the SUI/USDT pair could first reach $3.55, followed by the chart target of $3.89.
However, caution is warranted in the short term. The RSI on the 4-hour chart suggests the pair may face a near-term pullback due to overbought conditions. The neckline of the inverse head-and-shoulders pattern near $3.08 now serves as a key support level. A rebound off this level would confirm strength and increase the likelihood of continuation higher.
On the downside, if the price fails to hold the 20-day EMA and slips below the moving averages, SUI could revisit $2.80 and potentially drop to $2.60, invalidating the bullish setup.
As altcoin interest revives amid Bitcoin’s rally, SUI will be closely watched for confirmation of this technical breakout and sustained upward momentum, according to Cointelegraph.
