Sui $SUI is showing strong signs of a potential rally as the formation of a double-bottom pattern suggests a major breakout could be imminent. This technical formation often indicates a market bottoming out, signaling the possibility of a strong upward reversal.

Currently, $SUI is testing its 21-day moving average 21DMA while forming a pennant structure around the 3.30 mark. A pennant pattern typically signifies tight price consolidation, hinting at a significant price movement in either direction. If SUI breaks above the 21DMA, it would reinforce bullish sentiment and confirm a potential trend reversal in favor of buyers.

**Market Insights – Reduced Leverage Strengthens Bullish Case**

One of the key market shifts has been the reduction in leveraged positions. Earlier in 2024, SUI's leveraged futures positions peaked at 1.5 billion but have since declined to around 600 million, according to Coinglass. This is a positive development, as excessive leverage often increases the risk of sudden price crashes. Lower leverage suggests that greed in the market has cooled, making the risk-to-reward ratio much more favorable for buyers.

**Can SUI Reclaim 5 and Beyond?**

If SUI successfully breaks above its 21DMA and pennant structure, it could swiftly retest its previous all-time high of over 5.00. Looking at the broader picture, 2025 appears to be a strong year for the crypto market, with a pro-crypto stance from the US government potentially fostering greater adoption and growth.

With SUI’s blockchain ecosystem expanding rapidly, a surge toward 10 remains within reach, provided demand continues to rise and market conditions remain favorable.