SUI Drops 7% Amid Geopolitical Tensions, Tests Key Support

SUI, a prominent altcoin, has recently experienced a significant price movement, falling below the key $3.00 mark amid broader market retracement fueled by geopolitical tensions between Israel and Iran. This decline has led to a 7% drop over the past three days, reaching a two-month low of $2.68 before recovering slightly. Despite this pullback, some market analysts believe that SUI is poised for new highs, potentially targeting the $5.00-$5.50 range.

Since its late April breakout, SUI has been trading within a range of $2.33 to $4.10, with the price hovering around the upper boundary for the past two months. The altcoin ended its multi-month downtrend after breaking above its descending resistance at the end of March, leading to a rally to the $4.00 mark. Analyst Crypto Bullet suggested that SUI could be preparing for a similar performance, noting that the cryptocurrency is repeating its March-April breakout setup. According to the analyst, SUI broke down a falling wedge pattern before bouncing off the yearly Exponential Moving Average (EMA) and Moving Average (MA) between March and April, which propelled the downtrend breakout and rally to its May high. Currently, SUI is testing the EMA and MA again, while printing a new falling wedge pattern that targets the $5.00-$5.50 area. Crypto Bullet believes that this is where SUI will establish a Higher Low and soon rise to a New All-Time High (ATH).

Earlier this month, the analyst also highlighted a one-year rising wedge pattern that eyes the $8-$10 levels as the next major target for the cryptocurrency. The high-timeframe chart shows the altcoin has been hovering between the pattern’s upper and lower boundaries since early 2024. Amid its April price action, the cryptocurrency bounced from the pattern’s support, suggesting that a surge to the resistance line will come in the coming months if history repeats.

Trader Coinvo noted that SUI is currently retesting a make-or-break level, the key $2.80 area, which acted as support and weak resistance earlier this year. Holding this level is crucial for the cryptocurrency’s rally, as a drop could send the price toward the $2.33 range low and risk a potential retest of the $2.00 support. On the contrary, price stability in this area could propel a reclaim of the $3.00 barrier and a recovery of the range highs, which is necessary for a bullish rally continuation. Analyst Rekt Capital previously warned that June’s performance will be decisive for its mid-term action.

It’s worth noting that SUI has built a re-accumulation range around the same levels as it did in late 2024. At the time, it consolidated around the $3.39-$3.78 levels for weeks before securing a Weekly Closing above the range and setting up for its all-time high (ATH) breakout. This time, the cryptocurrency has been consolidating less cleanly than last year, failing to secure a weekly close inside the range for two consecutive weeks. SUI must reclaim the $3.39 area in the coming weeks to maintain its Monthly Bull Flag and position itself for higher levels. As of this writing, SUI is trading at $2.79, a 3.3% decline in the daily timeframe.