SUI rallies with a breakout above $3.50, fueled by 29% of Ethereum outflows

The total crypto market cap, excluding Bitcoin and Ethereum, has recovered to $828.61 billion with a 7% surge this month. As the altcoins continue to gain momentum, SUI is among the top-performing assets, not able to keep up with the stellar gains from April, where the token price increased by 58%.

SUI price analysis

On the daily chart, SUI shows a bullish reversal, marking the end of a recent pullback phase. The rally has led to a breakout from a falling wedge pattern.

The uptrend broke through both the 200-day EMA and the 23.60% trend-based Fibonacci level at $3.30. However, after clearing this key resistance, momentum has slightly weakened.

This is indicated by the formation of multiple doji candles on the daily chart. Still, with the broader bullish trend intact, the 50-day and 200-day EMAs are on track to form a golden cross—a historically bullish signal.

Additionally, the daily RSI remains in overbought territory, reflecting strong upward momentum.

SUI receiving Ethereum outflows

Beyond price action, the SUI network itself is experiencing increased traction. According to a recent tweet by Torero Romero, data from Wormhole Scan shows a notable transition of Ethereum funds to the SUI network.

Over the past 365 days, 29% of Ethereum outflows via the Wormhole Bridge have been directed to SUI. This growing adoption positions the SUI network as an emerging Ethereum alternative, potentially driving even greater demand for the token in the coming months.

SUI price targets

Based on current price action and network momentum, the SUI uptrend is likely to continue. According to trend-based Fibonacci levels, the rally could target the 61.80% level, near $8, signaling a potential new all-time high.

On the downside, critical support lies below $3.30, with the 200-day EMA at $2.79 as the next key level.