Will SUI Price Rally to $6 After Reclaiming $3?

SUI price has moved back above $3 after gaining by 9% in the last 24 hours to trade at $3.04 today, July 3. The altcoin has also created a cup and handle pattern that usually suggests that bullish traders are about to be in control, and a 2x rally could be in the making. Meanwhile, trading volumes are rising significantly, given that in just 24 hours, they rose by 164% to $1.53 billion.

SUI Price Reclaims $3 Amid Bullish Tailwinds

SUI price is gaining following gains in the crypto market today, which has seen all of the top coins, including Bitcoin, Ethereum, and other assets, record gains. However, SUI is showing potential signs of outperforming the other altcoins after it formed a bullish pattern.

The cup and handle pattern, as shown in the chart below, is made up of a rounded bottom and a handle as traders selling after the uptrend test the momentum’s strength. The handle’s descending channel is crucial to confirming this pattern because if SUI can make a strong close above it, it may cause a notable increase in price.

This week’s candle has moved above this upper resistance trendline, but to confirm that the rally of 107% as seen in the depth of this cup comes to fruition, it needs to make a strong close above it. If this happens, SUI price could record a two-times rally from its current price and reach an all-time high of $6.

Technical indicators are aligning with this bullish narrative towards the SUI price prediction. Firstly, the RSI has gone above 50, showing that the momentum is changing to bullish. The ADX line is also falling, and this typically shows that the downtrend that has formed the cup’s handle is not strong, and the price could crash.

However, the bearish outlook might get confirmation if the price falls below the lower descending channel, which will make the above bearish thesis invalid. This may happen if the market reacts to the $123M SUI token unlocks.

Open Interest Soars

The market interest towards SUI has grown significantly, and this is seen in the open interest, which has risen by 16% in the last 24 hours to $1.39 billion according to data from CoinGlass. When this metric is rising, when the price is also making gains, it supports a bullish outlook that the price of SUI may also continue to rise.

Moreover, the open interest is coming from traders who are holding long positions because the funding rate is also up, while the long/short ratio of 1.01 is showing that many traders are positive on how the price will perform.

This heightened level of interest might not only be coming from the recent gains in SUI price, but also from market activity. This is because of data from DeFiLlama showing that the network’s Total Value Locked is standing at $1.842 billion, which is the highest in three weeks.

In conclusion, the SUI price appears to be close to making gains because of the appearance of a cup and handle pattern on the one-week chart. This is a sign that the price of this altcoin is about to experience an explosive rally, and based on the cup’s depth, it may move to $6.