SUI price consolidates within a bullish flag pattern as analysts cite technical signals, rising DeFi activity, and key resistance levels.
SUI entered a consolidation phase as broader crypto markets showed mixed short-term momentum. However, this consolidation formed in a bullish flag pattern. It is often an indication of continuation rather than exhaustion of the trend.
SUI Forms Bullish Flag as Market Eyes $2.29 Breakout
According to market analyst Ali Martinez, SUI’s structure shows a continued upward pressure despite temporary pauses in the price. Therefore, consolidation is being perceived by more and more traders as preparation for another bullish leg.
https://twitter.com/alicharts/status/2012737965198356511
Technically, the bullish flag formed after a strong move upward. Subsequently, price action was compressed in a descending channel, which reflects profit-taking more than selling pressure.
Related Reading: Crypto News: SUI Bullish Setup Signals Potential Run Toward $20
Ali Martinez said that a confirmed break above $1.84 could send SUI towards $2.29. As a result of this, this target is in line with the measured move projection from the bullish flag formation.
In this structure, the current descending wedge is a healthy consolidation phase. Thus, the pattern implies strength rather than weakness in prevailing bullish sentiment.
Other technical indicators also strengthen this outlook. Specifically, analysts found a bull pennant formation on higher timeframes of support of continuation potential.
Additionally, an inverse head and shoulders pattern was formed on the daily charts. Therefore, the combined signals reinforce the expectations of a more general trend reversal confirmation.
Some market commentators had upside targets of more than $2.29. In some situations, analysts cited $2.50 as a potential extension level.
Hitting $2.50 would be a major technical achievement for SUI. Additionally, such a move may set a new all-time high under good conditions.
Recent price performance gives cause for cautious optimism to participants. Over the last 30 days, SUI shows an increasing gain rate greater than 29%, which is a sign of increased buying interest.
However, despite the recent gains, SUI is still about 66.8% below its January 2025 peak. It is interesting to note that the previous all-time high was $5.35.
Rising DeFi Activity Strengthens SUI Network Fundamentals
Beyond technicals, on-chain fundamentals are also behind the bullish narrative. Recently, there has been a very notable acceleration of decentralized finance activities on the Sui network.
According to Coingecko, Total Value Locked on Sui crossed the $1B mark. Therefore, the inflow of capital was a sign of increasing confidence in the network.
This growth in TVL is due to the growing use of lending, trading, and yield protocols. Moreover, developers are still rolling out new applications on Sui.
The higher the network activity, the more often there are higher demand for native tokens. As a result, SUI enjoys both speculative interest and utility-based interest.
Analysts stressed that fundamental growth can be used to strengthen technical breakouts. Thus, increased DeFi participation reinforces the likelihood of continued upward trends.
Meanwhile, market participants are wary of the more general crypto volatility. Therefore, it is critical to be confirmed above $1.84 before aggressive positioning.
Historically, such structures preceded noteworthy rallies throughout alternative layer-1 tokens. Therefore, traders consider SUI’s setup to be technically constructive.
If momentum is in line with network expansion, SUI may be able to challenge higher resistance zones. Ultimately, the direction of price will depend on confirmation of the breakout and market confidence.
Source: https://www.livebitcoinnews.com/sui-consolidates-in-bullish-flag-eyes-rally-to-2-29/