SUI is currently positioned at a critical level, a level that produced a 1400% rally in the past. A reciprocation of the same pattern could see the coin hit $10.
SUI, the native cryptocurrency of a layer 1 blockchain, which is priced at $0.86, is now placed at a critical level on an indicator. Historically, this level has been known to produce a rally of 1400%; as such, if the token reciprocates this behavior one more time, an analyst stated that it could reach above $10.
SUI trades inside a broadening wedge
An analyst who goes by the pseudonym Crypto Patel on X analyzed a situation that happened in 2024. In the analysis, Patel figured out that SUI prices were trading inside a broadening wedge, where the price hits the upper and lower trendlines of the wedge alternatively as the range widens.
Inside a widening wedge, the market moves from control into chaos. The buyers and sellers cause chaos as they become more aggressive. As both become more aggressive, the range of motion widens as SUI prints higher highs and lower lows. However, neither party gains the top hand at the end of the day.
Buyers and sellers get aggressive at either ends of the wedge
Buyers push the price up with strong momentum at higher highs, and this could sometimes trigger breakout traders and FOMO entries.
However, these moves are short-lived, and the follow-through is miserable. Sellers make sure to step in aggressively at these elevated levels, and the prices have sharp reversals. Quite often these high levels act as liquidity zones that trap late buyers.
On the other hand, the lower the lows, the opposite happens. Panic selling kicks in as the price drops sharply; it breaks previous supports and lands on a new support.
However, instead of continuing the pattern, buyers absorb the sell pressure and push the price back up. This traps short sellers and creates violent bounces.
As the market moves back and forth, the structure becomes a liquidity trap on both sides. Breakouts and breakdowns inside the wedge frequently fail, leading to fakeouts.
Traders who chase moves get caught, while more experienced participants tend to trade the extremes – selling highs and buying lows – until a clear breakout occurs.
Since SUI has touched the lower trendline of the widening wedge, the next move should be technically towards the upper trendline, given that SUI follows the pattern. To further substantiate the thesis, Patel used a Fibonacci tool.
SUI daily chart paints a bearish picture
Traders use this tool to identify support and resistance levels based on the Fibonacci sequence. According to Patel, the prices are currently at the 0.786 Fibonacci level, which produced a massive rally of 1400%. As such, given that SUI has another rally, there is a high chance that the prices could go past well over $10, stated Patel.
Despite Patel having high hopes for SUI in the long term, the daily chart shows neither bullish nor bearish price action. As shown in the chart, SUI could not cross above the 50-day moving average, which is $0.96, as it continues to consolidate and move sideways.
Even the relative strength index, an indicator that determines if the price is undervalued or overvalued, shows a neutral value of 40.
Weekly chart gives a glimmer of hope
Unlike the daily chart, which paints a bearish picture, the weekly chart has a bullish pattern, where the prices fall inside the falling wedge.
Although the prices fall inside this pattern, at the end of the formation of the wedge, there will be a spike. Think of it like a spring. The more it coils and stores energy, the bigger the uncoil impact will be. The falling wedge follows the same thesis.
Now that the SUI prices have just taken off the lower trendline, it should eventually travel towards the upper trendline, which is close to $2. And once the prices break out from the wedge, a conventional breakout should see the prices spike by the height of the wedge at the early stages of formation. As such, SUI is capable of reaching values above $5.
