Introduction
SUI cryptocurrency is demonstrating resilience despite recent price declines, holding above critical support levels while analysts debate its next directional move. The asset’s ability to maintain key technical structures has kept trader attention focused on potential breakout scenarios. Mixed signals from prominent analysts highlight the ongoing uncertainty in SUI’s near-term trajectory as network fundamentals continue to strengthen.
Key Points
- SUI maintains critical support above $2.63 despite 20% weekly decline, forming higher lows indicative of accumulation phase
- Analysts divided: Van de Poppe sees structural strength and weakening resistance, while Davis warns of downside risk after triangle breakdown
- Network fundamentals strengthen with Grayscale trusts, rising TVL, record DEX volume, and institutional partnerships boosting long-term case
Technical Structure Shows Resilience Amid Price Pressure
SUI is currently trading around $2.70, representing a decline of more than 20% over the past week, yet the cryptocurrency continues to hold crucial support above the $2.63 level. On the weekly chart, SUI has formed a series of higher lows, a pattern that technical analysts interpret as evidence of persistent buyer interest during market dips. This formation is frequently observed during accumulation phases, typically occurring just before significant breakout attempts.
Analyst Michaël van de Poppe has drawn parallels between the current setup and patterns that preceded the late 2024 rally. He noted that the current pattern “still shows strength” with support levels remaining steady, emphasizing that there has been no structural break despite recent price volatility. SUI has repeatedly tested the $4.20 resistance level, with each rejection followed by progressively higher lows, suggesting that resistance may be weakening over time.
Van de Poppe specifically highlighted that “resistance becomes weaker” with this type of prolonged buildup, indicating that a decisive move above $4.20 with substantial trading volume could trigger a run toward new highs. Until such a breakout occurs, however, SUI remains confined to a sideways trading range between established support and resistance levels.
Diverging Analyst Views on Key Breakdown
Lark Davis has presented a contrasting perspective following SUI’s breakdown below a key trendline that formed part of an ascending triangle pattern. This technical breakdown occurred during a sharp sell-off, transforming what was previously a support line into a new resistance level. Davis’s analysis suggests that SUI’s ability to reclaim this trendline and re-enter the ascending triangle formation would confirm a false breakdown and resume the bullish setup.
According to Davis, if SUI fails to reclaim this critical zone and faces rejection at the former support-turned-resistance line, the cryptocurrency faces the risk of further downside pressure. This technical divergence between analysts highlights the current uncertainty in SUI’s near-term price direction, with van de Poppe emphasizing structural strength while Davis warns of potential breakdown consequences.
Network Growth and Institutional Adoption Strengthen Foundation
Beyond technical analysis, SUI’s fundamental case continues to strengthen through network growth and institutional adoption. Van de Poppe has pointed to network expansion as a key factor in SUI’s long-term prospects, with Grayscale launching investment trusts tied to projects within the Sui ecosystem. This institutional endorsement represents a significant vote of confidence in the blockchain’s potential.
The network has demonstrated robust growth metrics, with stablecoin and BTC total value locked (TVL) on Sui showing notable increases in recent months. Bluefin DEX, a prominent decentralized exchange operating on the Sui network, achieved record trading volumes in October, indicating growing user adoption and platform activity.
Further strengthening the ecosystem’s institutional credentials, Sui has partnered with Figure Technology to bring the YLDS token to its network. This token is backed by short-term Treasury securities and repo agreements, representing a bridge between traditional finance and blockchain technology. The combination of steady technical support, expanding ecosystem development, and early institutional involvement continues to position SUI as an asset of interest for traders seeking potential upside opportunities.
📎 Related coverage from: cryptopotato.com