SUI Holds Key Support, Analysts Eye 50% Rally Potential

SUI’s price action has shown notable strength in recent sessions, retesting the crucial $2.00 level as support after recovering from the recent market crash and breaking out of a one-month downtrend line. The cryptocurrency had experienced significant volatility, trading between $2.30-$3.00 after the October 10 correction, which saw prices briefly crash by over 87% to $0.50. The early November pullback sent the price below the local range to seven-month low levels, with SUI closing below the $2.00 barrier for the first time since April and briefly retesting the $1.80 area.

The bounce from this critical support zone propelled SUI back above $2.00, with the altcoin reaching a one-week high of $2.20 on Monday before experiencing a market-wide retracement on Tuesday. Analyst Ali Martinez recently highlighted that the TD Sequential indicator flashed a buy signal for the cryptocurrency, suggesting that the bottom could be in and a rally to higher levels is next. Martinez later confirmed the buy signal, adding that sustained buying pressure could push SUI to $3 or even $4, representing potential gains of approximately 50% from current levels.

Market watcher Daan Crypto Trades noted that SUI continues to trade within its big higher timeframe area, currently retesting a make-or-break zone. The cryptocurrency has been hovering between the $2.00-$4.00 levels for most of the cycle, with the range’s lower boundary serving as a major support zone since late 2024. According to Daan Crypto Trades, the price is holding initially on this higher low but must show short-term strength to break out from this critical area.

The technical picture has been further strengthened by SUI’s breakout from its one-month diagonal resistance, which could send the price back to pre-November pullback levels. Currently, SUI’s price is retesting the downtrend line as support, which could turn the correction into a deviation and propel a move back above $2.30. As Daan Crypto Trades emphasized, this would be a solid sign of strength that might indicate a larger reversal is underway.

Adding to the bullish technical outlook, analyst Crypto Kaleo highlighted the cryptocurrency’s historical performance patterns, affirming that when SUI breaks out of a major downtrend, it rips. As he pointed out, the cryptocurrency broke out of similar downtrends during the May and July rallies, soaring more than 50% within a week in both instances. This historical precedent suggests that if SUI holds current levels, its price could jump to the $3.00 barrier in the short term.

Beyond technical indicators, fundamental developments are adding support to SUI’s recovery narrative. The Sui Network announced a significant partnership between the exchange Crypto.com and the Sui Foundation, the organization behind the adoption and advancement of the ecosystem. This collaboration represents a substantial boost to SUI’s institutional credibility and market infrastructure.

According to the announcement, Crypto.com has launched regulated custody and liquidity support for SUI, giving institutional clients a secure, compliant way to store, manage, and access deep liquidity for the cryptocurrency. This development addresses a critical need in the cryptocurrency space for regulated institutional-grade services, potentially opening the door for increased institutional participation in the SUI ecosystem.

Despite the bullish signals, analysts caution that volatility may persist in the near term. Crypto Kaleo warned that the two previous breakouts in May and July also saw some volatility after the initial move, suggesting another retest of the downtrend line could happen before the next leg up. This pattern indicates that while the overall direction appears positive, traders should be prepared for potential short-term fluctuations.

As of this writing, SUI is trading at $2.07, representing a 3.8% decline in the daily timeframe. This minor pullback comes amid broader market retracement but occurs within the context of SUI holding above the critical $2.00 support level. The ability to maintain this support, combined with the technical breakout and fundamental partnership developments, creates a compelling case for SUI’s potential recovery, though market participants should remain vigilant for potential retests of key support levels.