Sui price is poised for a rally after a retest of the breakout level

• The Sui price is breaking out of a bearish wedge pattern, signaling a bullish move.
• Grayscale, a leading crypto asset manager, is launching the Grayscale Sui Trust for its investors.
• On-chain data shows that SUI’s TVL is increasing, suggesting growing activity and interest in the SUI ecosystem.
• A daily candle close below $0.59 would invalidate the bullish thesis.

Sui (SUI) broke the bearish pattern on Thursday and rallied 19% over the next four days, but since Tuesday, it has been experiencing a pullback, trading 4.8% lower at $0.96 at the time of writing article.

On-chain data indicates SUI’s Total Value Locked (TVL) is increasing, reflecting growing activity and interest in the ecosystem. At the same time, Grayscale’s launch of Grayscale Sui Trust on August 7 suggests a bullish outlook for SUI in the coming days.

The Sui price is set for a rally after retesting the key support level

The Sui price broke the bearish pattern on Thursday, a formation created by connecting swing highs and lows from mid-April to August. This move signaled a potential bullish trend, and the price subsequently rose 19% over the next four days.

As of Tuesday, the price is facing a decline from its 200-day moving average, which stands at around $0.99, and is trading slightly lower by 4.8% on the day at $0.96.

If the Sui continues to pull back, it could find support around the upper trendline of the bearish pattern at $0.82. If this support holds, SUI could rise 34% from that level, targeting $1.10, its daily resistance level.

The Relative Strength Index (RSI) and Awesome Oscillator (AO) momentum indicators on the daily chart are comfortably above their respective neutral levels of 50 and zero, strongly indicating bullish dominance.

SUI/USDT daily chart

In addition, data from crypto-intelligence monitor DefiLlama shows that SUI’s TVL increased from $342.82 million on August 5 to $628.96 million on Tuesday.

This 83% increase in TVL indicates growing activity and interest within the SUI ecosystem. It suggests that more users are depositing or using assets under SUI-based protocols, adding more credence to the bullish outlook.

SUI TVL graph

Despite the bullish thesis signaled by both on-chain data and technical analysis, if Sui’s daily candlestick closes below the August 7 daily low of $0.59, the outlook will shift to bearish. This scenario could lead to a 22% crash to retest the August 5 low of $0.46.