SUI’s Price Stability at Risk: Potential 30% Drop Ahead

SUI, emerging as one of the notable altcoins in the current cryptocurrency market cycle, has demonstrated an impressive recovery over the last two months. However, recent performance trends indicate that the cryptocurrency may struggle to maintain its upward trajectory, as it fails to hold critical support levels. Analysts are now raising alarms about the potential for a significant price drop if these levels do not hold.

Current Market Performance of SUI

Since reaching a four-month high of $4.29, SUI has predominantly hovered within the $3.40 to $4.00 range for the majority of May. The cryptocurrency experienced a sharp decline of approximately 14.2% last week, precipitated by a broader market retracement, causing it to test the crucial $3.00 support threshold over the weekend.

At the start of this week, SUI briefly recovered, climbing to the $3.20 mark in alignment with the general market rebound. However, this recovery was cut short, as the price drifted back down to the $3.10 to $3.15 range by Thursday morning. The inability to hold this level is concerning for traders, as it signals bearish sentiment.

Technical Analysis: Warning Signs Emerge

Crypto analyst Carl Runefelt has pointed out that SUI’s price action has formed a descending triangle pattern, suggesting a bearish outlook. Within the context of this formation, there is also a developing potential Head and Shoulders pattern, often considered a reversal signal, with the triangle’s baseline resting around the $3.10 support level.

This descending triangle could trigger a significant price drop should the support be breached, with Runefelt forecasting a potential retracement of around 35%, potentially targeting the $2.00 mark.

Potential Upside Scenarios

While cautioning against the impending downside, it is essential to explore potential bullish scenarios as well. Analyst Crypto Bullet indicated a “humongous” rising wedge pattern on SUI’s chart, eyeing targets between $8 and $10 in the longer term. This pattern has been in effect since early 2024, with SUI oscillating between its upper and lower boundaries for over a year. The recent retest of the support trendline during the April lows has fueled optimism for a bullish reversal.

However, for a definitive bullish breakout, SUI must overcome the resistance at $4.20. Achieving this milestone could initiate a significant rally, pushing the cryptocurrency toward previously uncharted territory.

Comparison with Previous Market Cycles

Rekt Capital highlighted that SUI is in a comparative position to replicate its performance from late 2024, wherein the cryptocurrency rebounded after retesting $3.39, transforming it into a robust support level. This upward momentum propelled SUI to its all-time high (ATH) of $5.35 in January 2025, a critical benchmark for traders. Currently, May’s monthly close below the critical $3.39 level has raised concerns about the altcoin’s ability to regain strength.

Implications for Traders

As of the latest updates, SUI is trading at approximately $3.08, reflecting a 2.3% decline. Analysts emphasize the importance of monitoring key support levels. If SUI fails to reclaim $3.39 as a supportive level (evidenced by daily closes above this range), it risks revisiting sub-$3 levels, with traders potentially targeting the $2.81 mid-range area as the nearest support. If this area does not hold, the scenario of dropping 30% towards the $2.33 range low could be a reality.

Final Thoughts

In summary, SUI currently finds itself in a precarious position within the cryptocurrency market. Analysts suggest that traders adopt a cautious approach, as the altcoin’s recent price movements indicate a struggle to maintain bullish momentum. Rapid fluctuations in support levels and resistance could lead to significant losses or gains for investors in a short period.

Keeping abreast of market shifts and employing sound technical analysis strategies will be crucial as SUI navigates through this turbulent phase.

Source: newsbtc