From early June, Sui [SUI] token prices have hovered around the $0.65 low, but this changed rapidly over the past few days of trading. The Bitcoin [BTC] momentum translated well across the crypto market, and many alts have seen double-digit percentage gains this week.
SUI was one such, rallying 27.5% in three days, from $0.65 to $0.83 at the time of writing. Beyond the market-wide bullish sentiment, the Aftermath Perpetuals Futures V2 going live on the Sui mainnet also likely helped bolster sentiment.
The $0.78-$0.83 supply zone was smashed apart fairly easily during the rally, and has since been retested as support. This has opened the way for a bigger price move toward $1.25 or higher.
Arguments for SUI as a buying opportunity
The TD Sequential technical indicator on the monthly timeframe gave a buy signal. Generally, such a shift signals a potential 1-4 month upswing in price action.
SUI on the monthly chart was also forming a doji star on the monthly timeframe, a pattern that tends to accompany the end of a downtrend.
Social media engagement remained negative, but onchain activity was soaring. Active addresses have risen 250% over the past week.
The analyst concluded that price action, onchain activity, and sentiment were “beginning to align”. Bullish price targets included $2.30 as the rising channel’s mid-level, with $7.9 being the other, much more optimistic target.
Traders’ call to action- Watch the SUI structure
AMBCrypto reported recently that the swing structure of the altcoin was still bearish on the 1-day timeframe. The recent gains have not refuted this fact yet.
The Fibonacci retracement levels showed that the current rally was a pullback within the broader downtrend. This rally can comfortably reach $1.12-$1.25, now that the $0.80 area has been flipped.
A breakout past the $1.42 swing high is needed to shift the structure bullishly. Until market participants see sustained buying and a move beyond $1.25, the bearish bias on this timeframe is valid.
Final Summary
- Sui offered multiple technical indications of a bullish trend flip and a potential rally to $2.30, according to analyst Ali Martinez.
- On the flip side, the swing structure was still bearish, and the current rally was only a pullback within a broader downtrend.
