SUI spikes after breaking out of bullish pennant. Key indicators suggest altcoin could retest $5 soon.
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Key Takeaways
SUI’s price doubled in the past week, briefly retesting $4 for the first time since February, despite a recent token unlock
Instead of declining, demand absorbed the supply, pushing SUI to break out of a bullish pennant and hit multi-month highs.
A bullish MACD crossover and strong support from the Supertrend indicator suggest the SUI uptrend could continue.
Sui (SUI) price briefly retested $4 for the first time since Feb. 1, following a 100% increase within the last seven days. This development comes eight days after a primary token unlock on May 1.
While the price has slightly cooled to $3.95 at press time, several key indicators suggest the layer-1 blockchain’s native cryptocurrency could shrug off the pullback and resume its uptrend.
SUI Shrugs Off Token Unlock Impact
On May 1, the Sui team unlocked 88.43 million tokens, worth approximately $350 million, into circulation as part of its scheduled vesting.
Traditionally, such a large token unlock would trigger selling pressure and weigh on price.
However, SUI defied expectations, as demand for the token surged and absorbed the increased supply.
As a result, the SUI coin price climbed to its highest point in about four months. On the daily chart, CCN observed that the SUI validated this run after breaking out of a bullish pennant.
A bullish pennant is a continuation pattern that forms after a strong upswing, followed by a brief period of consolidation, and eventually results in a breakout. As seen below, the SUI breakout happened after it pushed beyond the resistance at $3.33.
This price action starkly contrasts with how SUI performed between January and mid-April. Furthermore, the development has triggered a bullish crossover on the Moving Average Convergence Divergence (MACD).
For context, a bullish crossover happens when a shorter Exponential Moving Average (EMA) rises above the longer one. In this case, the 12 EMA (blue) has crossed the 26 EMA (orange).
The SUI coin price will likely break the overhead resistance at $4.03 if this trend continues.
In addition, some analysts have also opined that SUI will continue to be one of the biggest winners of this cycle. One analyst with such a view is Michaël van de Poppe, who noted that the project’s fundamentals, price action, and team could be key to driving the price higher.
“Clear breakout of the downwards pattern, strong move upwards, and clearly in an upwards trend. Aside from that, the ecosystem keeps on delivering with constant new projects launching and thriving, +TVL constantly rallying upwards. Probably going to be a big winner during this cycle,” van de Poppe stated on May 8.
SUI Price Analysis: Recovery Not Over
Regarding its short-term outlook, the Supertrend indicator shows that the SUI coin price might continue to rise. One reason for this is that the green line of the indicator is below the price, indicating strong support.
The Chaikin Money Flow (CMF) reading has also jumped to 0.25, signifying intense buying pressure. If these indicators hold this position, SUI’s price might break the resistance at $4.22.
If validated, the altcoin’s market value could rise to $5.38 and hit a new all-time high. However, a bearish divergence might render this prediction null and void.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
