Sui Network (SUI) Surges 20% to $3.54, Faces Bearish Signals

Sui Network (SUI) has recently experienced a significant surge, reaching multi-month highs. The price of SUI has been on an upward trajectory, breaking through local resistance levels and marking higher highs and higher lows since late October. This bullish trend began in September when SUI broke through the $0.9-$1 range and then retested it as support. However, recent bearish signals suggest that another drop may be imminent.

The price action for SUI has been consistently bullish on the daily chart, with the Ichimoku Cloud remaining bullish, indicating solid support levels around $3.2 and $4.1. Despite this, the average trading volume has decreased slightly over the last month, signaling a reduction in buying pressure. This is evident on the A/D indicator, which has slowed down, especially in the past week.

Earlier this month, the Fibonacci extension level at $4.5 acted as resistance but has now become a demand zone. The 2-week look-back period revealed a concentration of liquidation levels around $4.3, with another liquidity zone at $5. The price for SUI has remained within this range over the past week, reflecting the build-up of liquidity. With the recent dip in Bitcoin (BTC) prices and the consolidation phase of SUI, this range-bound movement may continue for several more days.

The recent surge in SUI prices has been impressive, with the cryptocurrency soaring by over 20% to reach a local peak of $3.54 before experiencing a slight retracement. However, the bearish signals, such as the reduction in buying pressure and the range-bound movement, suggest that investors should be cautious. The future projections for SUI remain bullish, with the Ichimoku Cloud indicating solid support levels. However, the recent dip in BTC prices and the consolidation phase of SUI may lead to a temporary drop in prices.

SUI was stuck in a falling channel for weeks, consistently making lower highs and lower lows. That changed recently when the SUI price broke out of the channel and pushed sharply upward, gaining around 18% after the breakout. It surged as high as $3.57 before starting to pull back. At the time of writing, the SUI price is around $3.35 and showing signs of a short-term correction. The quick rally has lost steam, and traders are now watching to see where it might find support. If the price falls further, $3.0 could be a key level to watch. That area aligns with the previous breakout zone, which could now act as a support level.

Sui Intern, a popular crypto analyst and parody account on X, recently posted that SUI has outperformed major chains like Ethereum, Solana, Cardano, and Tron in terms of speed, cost, and scalability. The tweet reads: “JUST IN: SUI FLIPS $ETH, $SOL, $ADA and $TRX as the Fastest, Cheapest, and Most Scalable Smart Contract Chain in the Top 5! @SuiNetwork leads with: 120,000 TPS (max), $0.009 per txn, 2 sec finality. Efficiency isn’t optional. Sui makes it default.” This kind of narrative is fueling strong sentiment around the project, especially as developers and investors look for scalable networks that can support mass adoption. If the broader market remains bullish, and Bitcoin keeps pushing higher, it’s possible that the SUI price could bounce quickly after this current dip.

While the price is cooling down after the rally, this could just be a healthy correction. Many tokens often pull back after a strong move before resuming their trend. If buyers step in around the $3.0 level and Bitcoin maintains its bullish momentum, the SUI price could make another attempt at breaking above $3.57. But if that support fails to hold, SUI could dip deeper, possibly revisiting areas below $3.0. That would not invalidate the overall breakout, but it could delay any move toward higher highs. Right now, the focus will be on whether the bulls can defend this new zone and flip it into a launchpad for the next leg up.