SUI Retests Neckline with Bullish Patterns Pointing Toward $5.60 Target

SUI retests neckline of a confirmed Inverse Head & Shoulders, signaling potential reversal with a technical target set at $5.60.

A bullish Cup and Handle on the daily chart supports price continuation, with targets projected at $4.7600 and $5.6765 respectively.

SUI’s ecosystem expands rapidly, surpassing $1 billion in stablecoin market cap and leading in new native token holders across all chains.

SUI is showing bullish potential, driven by strong technical formations and growing on-chain activity. The current price action suggests possible upside momentum, supported by rising fundamentals and key support levels.

Inverse Head & Shoulders Signals Reversal on Daily Chart

According to Rose Premium Signals, SUI is retesting the neckline of an already confirmed Inverse Head & Shoulders pattern. This classic bullish reversal structure is often observed near trend bottoms and typically signals the beginning of a new upward move. If the retest holds and the pattern fully develops, the projected target could extend to $5.60.

Source: Rose Premium Signals

This neckline retest represents a pivotal point for bulls, as a successful continuation above this level would reinforce market sentiment. The pattern's presence on the daily time frame adds strength to its reliability, potentially marking the start of a longer-term uptrend.

Traders will likely monitor this retest closely. A strong move above the neckline, supported by volume, could confirm a breakout toward new highs. Conversely, a failure to hold may delay the expected momentum.

Cup and Handle Formation Supports Continuation Narrative

The SUI daily chart also shows a bullish Cup and Handle pattern. The "cup" ranges from February up to the start of May, creating a rounded bottom, while the "handle" shows light consolidation with a bull flag. SUI traded around $3.8782 as of writing, just within the support range of $3.6699 and $3.8473.

This range previously served as resistance, now acting as support, indicating possible preparation for a breakout. The bullish setup projects $4.7600 as an initial upside target, followed by $5.6765 for the longer term. These levels are based on the pattern’s measured move.

The structure remains valid as long as SUI holds above $3.6699. A breakdown below this level would invalidate the bullish formation and suggest further downside movement.

SUI Ecosystem Growth Adds Fuel to Technical Optimism

Alaoui Capital notes that SUI has surpassed $1 billion in stablecoin market cap. This milestone reflects rising demand and growing user engagement within the ecosystem. Additionally, the chain records the highest number of new native token holders among major blockchains.

This increase in adoption, in conjunction with on-chain metrics on the rise, lends strength to the bullish technical patterns being witnessed. Having both fundamental and technical aspects in favor, investors and analysts are eagerly awaiting a breakout past major resistance points.

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