- SUI’s $3.20 support level could trigger explosive price surge soon.
- AI partnership with Alibaba Cloud could propel SUI to new heights.
- Technical indicators point to imminent breakout, targeting $10 for SUI.
SUI (SUI) has been caught in a tight consolidation pattern for weeks, but analysts are predicting that the cryptocurrency is on the verge of a major breakout. The key to this potential explosion lies in the critical support zone between $3.15 and $3.20, which SUI has tested repeatedly.
The token is currently trading just above $3.30, with a slight 0.57% drop over the past 24 hours and a 7-day decline of 6.66%. Despite these setbacks, SUI still holds a strong market capitalization of nearly $11.8 billion, signaling that it has significant potential for growth.
Also Read: Crypto Expert Sends Important Message to XRP Holders Amid Trying Times
A Tightening Triangle and Explosive Potential
The price action of SUI has formed a classic descending triangle, a technical pattern often linked with high volatility. According to market experts, the next few moves are crucial. If the token successfully defends the $3.15–$3.20 support level, a breakout could send the price soaring to $5.00, and even as high as $10.00 in the longer term.
However, a failure to hold this support could lead to a deeper correction, potentially challenging the current bullish momentum.
Momentum Indicators Point to a Potential Breakout
Despite the recent minor bearish pressure, market indicators show that SUI is primed for a move. The MACD line is just below the signal line, indicating slight bearish sentiment, while the RSI sits at 43, signaling neutral-to-bearish market conditions.
However, these indicators suggest there is still room for a reversal, especially if buying momentum starts to build again. The market is in a wait-and-see mode, with investors watching closely for a decisive catalyst.
Source: Tradingview
Open Interest and Strong Market Participation
The derivatives market shows healthy participation, with open interest in SUI standing at a robust $780 million, primarily concentrated on Binance and Bybit. This suggests that a large number of traders are preparing for a major price move, whether up or down.
Despite a small 0.55% drop in open interest over the last day, the widespread distribution of positions indicates that traders expect significant volatility in the near future.
Source: Coinglass
Fundamental Boost from AI Partnership
The recent announcement of SUI’s partnership with Alibaba Cloud to launch an AI Coding Assistant has added fuel to the optimism. This fundamental development could provide the catalyst SUI needs to break through its consolidation phase and drive the price toward its targeted levels. Traders are hoping that this partnership will provide the necessary momentum to trigger a rally.
With the key support level in place and strong market participation, all eyes are on SUI as it inches closer to a potential breakout. Whether it holds its support or fails to do so will determine the next big move for the cryptocurrency.
Also Read: Shiba Inu Community Drives Major Token Burn as SHIB Shows Volatility in Price
