The cryptocurrency market saw an extended correction on Friday as Bitcoin struggled to break through the $70,000 mark, with most altcoins following suit in a bearish pullback. One exception, however, might be the up-and-coming altcoin, SUI, which is drawing attention from analysts who believe it’s entering an ideal dollar-cost averaging (DCA) zone. SUI’s recent price movement suggests a strategic entry point for long-term investors looking for potential gains in this volatile market.
SUI Price Holds Amid Market Pullback
SUI, currently trading at $1.89 after a 2% drop in the last 24 hours, holds a market cap of $5.24 billion. While many assets saw their recovery trend stall amid the bearish momentum, SUI’s price activity resonates with a potential continuation pattern, signaling a possible upward rally. This observation has not gone unnoticed, as some crypto analysts point out that SUI’s current price structure might set the stage for a surge toward $3.
One key analyst, Suipiens.su, recently highlighted SUI’s “Perfect Zone” for DCA. According to their analysis, SUI’s price resonates within two rising trendlines, forming a broadening wedge pattern—a structure that often indicates market indecision and a gradual shift in sentiment. As SUI re-tests the lower boundary of this wedge, investors are eyeing a potential breakout scenario.
DCA Opportunity – SUI’s Bullish Momentum Building?
Broadening wedge patterns, characterized by diverging trendlines, generally indicate a tug-of-war between buyers and sellers. For SUI, this pattern has formed with key support at its lower trendline, a level that has provided dynamic backing since late September. Crypto enthusiasts watching this setup see it as the “final dip” before a possible upward move, aiming for SUI to reach or surpass its all-time high (ATH) of $2.36 and even eyeing a $3 target.
Supporting this optimistic outlook, DeFiLlama data shows that SUI’s Total Value Locked (TVL) has surged by over 217% in just three months, jumping from $313.5 million to $995.5 million. This TVL growth reflects growing investor confidence, as more users lock assets within SUI’s decentralized finance (DeFi) ecosystem. With rising TVL often seen as a bullish indicator, SUI’s price could gain momentum from increased adoption within its ecosystem, further enhancing the prospects of a price recovery.
Over the past 12 days, SUI has experienced a pullback from $2.35 to $1.85, registering a 21% decline. According to another crypto analyst, CryptoBull360, this retracement forms a falling wedge pattern on the two-hour chart. Typically, such a formation suggests an eventual flip from resistance to support, as buyers regain control.
A breakout from the current trendline, combined with a Point of Control (PoC) signal, could mark the beginning of a bullish rally for SUI. On the downside, however, if sellers manage to hold the overhead trendline, SUI may face further correction. This support-resistance battle remains crucial in determining SUI’s near-term direction.
Also Read: U.S. Gov Wallet Compromised – $20M In Crypto Sold Amid Bitfinex Hack Lawsuit
Final Thoughts – Is Now the Right Time to Invest in SUI?
As SUI tests the waters with its current trendline support, the formation of a wedge pattern and soaring TVL growth have many investors viewing this as an ideal DCA opportunity. The setup appeals especially to long-term investors who believe in SUI’s DeFi potential and expect a rebound in the broader cryptocurrency market.
While risks persist in the volatile crypto landscape, SUI’s current price structure and the growing capital locked in its ecosystem suggest a promising entry point for those willing to hold through market fluctuations.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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