SUI drops 5% to $3.84 as a rising wedge pattern forms. Will it break down to $3.13 or rally to $5.40?

As Bitcoin’s rally loses momentum, altcoins like SUI are experiencing a pullback. SUI has dropped nearly 5% in the past 24 hours. Currently, SUI is trading at $3.84, with a market capitalization of $13 billion.

SUI’s price is fluctuating near the psychological $4 mark, showing a bullish struggle to stay above this key level. However, technical indicators warn of a possible minor pullback toward $3.13.

Should you consider holding SUI under these conditions?

The price of SUI has surged 85%, from a low of $2.10 on April 20 to its current price of $3.99. This bullish trend has established a crucial support trendline.

However, the ongoing struggle to form higher highs has created a resistance trendline. Together, these converging lines form a rising wedge pattern on the 4-hour chart.

At present, SUI is finding support at the 50-EMA and the $3.81 level, which lies near the wedge’s lower boundary. With a 2.36% surge in the past hour, SUI is attempting to rebound and challenge the overhead resistance trendline.

That said, weakening momentum, as highlighted by a falling RSI, raises concerns about a potential bullish failure. Additionally, a bearish divergence in the RSI increases the likelihood of a breakdown.

If SUI fails to stay above the $3.81 support level and breaks below the wedge, the price could drop toward the 200-EMA at $3.22, close to the key support level of $3.13.

Conversely, a bullish breakout above the upper trendline would invalidate the bearish outlook and push SUI toward the $5 mark, an upside potential of nearly 30% from current levels.

Analyst Sees Strong Uptrend for SUI

Despite short-term concerns about a minor pullback, analysts remain optimistic about SUI’s long-term potential.

Crypto analyst Ali Martinez anticipates a bullish continuation, targeting the next major resistance at $5.40. He notes that there’s still significant room for growth.

$SUI looks primed for more upside, with the next major resistance at $5.40. Plenty of room to continue surging. pic.twitter.com/LSIQ0pHMqp

— Ali (@ali_charts) May 12, 2025

In recent developments, Phantom, a well-known crypto wallet for DeFi and NFTs, has added support for the SUI token.

Users can now swap tokens between SUI, BASE, Ethereum, and Solana directly within the Phantom Wallet.

Moreover, Phantom provides access to multiple SUI network DApps and enables users to purchase SUI from within the wallet. This increased accessibility will likely boost demand and support SUI’s ongoing bullish momentum.