Breakout In Sight? SUI Set To Test Crucial $3.5 Resistance With ATH In View

Popular market analyst Ted Pillows has tipped Sui (SUI) for an impending price breakout. Notably, the prominent altcoin has recorded a steady price decline in the past month with an estimated loss of 17.18% within this period. However, Pillows notes the formation of a bullish pattern which indicates substantial market relief ahead. Related Reading: SUI Rally At Risk? Analysts Warn Of 30% Dip If This Level Doesn’t Hold SUI Gathers Momentum Ahead Of Showdown With Resistance In an X post on June 7, Pillows shares a positive insight into the SUI market despite a sustained downtrend throughout May and early June. The analyst notes that SUI appears to hit local bottom within the $2.8-$3.0 following a slight rebound in the past 48 hours. Interestingly, this recent price action could signal market reversal especially considering the formation of a bullish descending wedge pattern on the SUI daily chart. For context, the descending wedge is a classic bullish reversal pattern marked by two converging trend lines sloping downward as seen in the chart below. The price action within the wedge which typically consists of lower highs and lower lows but the decreasing slope of the lows signal a weakening bearish pressure. Considering the rebound from the $2.8 which represents the lower boundary of the descending wedge and the narrowing of both trend lines, Pillows postulates SUI is preparing for a major upside price breakout. However, the altcoin must overcome a crucial resistance at $3.5 price level which represents the upper boundary of the descending wedge pattern. Pillows explains that a successful daily price close above $3.5 is likely to trigger a robust buying pressure that could force a SUI market rally for the next 2-3 weeks leading to a new all-time high. Based on the analysis presented, initial price targets are set at $4.00 indicating an instant return to the peak price region in May. However, with Pillows’ analysis hinting at a new all-time high, investors should expect any potential price breakout to hit a minimum price target of $5.21 representing a 60.8% gain on present market prices. Related Reading: Crypto Analyst Says This Bitcoin Top Signal Hasn’t Gone Off Yet — What To Know SUI Price Overview At the time of writing, SUI trades at $3.23 representing a 2.33% gain in the past day. However, weekly and monthly losses of 1.01% and 17.10%, respectively suggests the altcoin still has ground to make up. Nevertheless, SUI remains one of the best performing tokens of the present market cycle with potential star of the altseason considering its 211.11% in the last year. Featured image from Binance Academy, chart from Tradingview

Source: NewsBTC