SUI up over 10%, analyst eyes $6 if this happens

SUI continued to rally towards its all-time high and is up over 10% in the last 24 hours, supported by ecosystem growth.

Sui (SUI) rebounded after being in a downtrend for four days, rising in price from $1.62 to $2.08, increasing its market cap to $5.7 million. Increased investor activity pushed trading volume up 35% to $1.76 billion on Oct. 30, after more than doubling on Oct. 29 from the previous day.

Driving the recent rally has mainly been excitement around the launch of a Major League Soccer-themed NFT collectible platform called MLS Quest on Sui in partnership with crypto startup Sweet. The platform allows MLS fans to collect digital medallions and win prizes based on highlights of real-world league matches.

Following the MLS partnership, net inflows to SUI increased, reaching the highest level among all chains on October 29, according to community member ToreroRomero, further solidifying the momentum of the rally.

CoinGlass data reveals that open interest in the SUI futures market increased by 13.5% over the past four days, from $450 million to $511 million. The increase in open interest, especially with increased trading volume, indicates increased trader activity in general and indicates that the market is expecting further upside.

SUI price, RSI and ADX chart — October 30 | Source: crypto.news

However, on the 1-day SUI/USDT chart, the Relative Strength Index is near the neutral level at 57. Meanwhile, the Average Directional Index stands at 28, indicating moderate trend strength, but the recent decline suggests the trend may be weak. We are losing steam. Considering both indicators, SUI may see sideways movements in the short term.

SUI creates a cup and handle pattern

However, one analyst predicts that SUI could rise as high as $6.9 in the coming months.

In an October 28 post on X, analyst Alex Gray observed that Sui had successfully broken the neckline of the Cup and Handle formation, a widely recognized bullish indicator in technical analysis.

According to Gray, SUI is currently in a positive retest phase, strengthening the possibility of continued gains. It set the initial target at $6.9, a 235% increase from the current price level, which marks a bullish level. If the upward momentum continues, the price may rise to $9.6, which is the exact target of the Cup and Handle formation.

At the time of writing, SUI is down 12% from its all-time high of $2.35 earlier this month.