Sui Technical Analysis: Market Outlook on June 4, 2025

Technical analysis of Sui on June 4, 2025, exploring resistance, support, and indicators

On June 4, 2025, Sui (SUI) is trading within a range of $3.40 to $3.55, with the market in a consolidation phase with a bearish tilt. Technical analysis on the daily timeframe indicates the formation of a descending triangle pattern, suggesting potential selling pressure, though the final direction remains unclear. The price recently tested the $3.55 resistance but failed to break through with significant volume, reflecting trader hesitation. **Key Resistance and Support Levels** Key resistance levels are currently around $3.55 and $3.90. The $3.55 level is significant due to prior price reactions and candle congestion. A high-volume breakout above this level could target $3.90, potentially opening the path to $4.20. On the downside, key support levels are at $3.40, $3.20, and $2.98. The $3.40 level, a short-term support, has been tested multiple times, and a break below it could lead to a correction toward $3.20. **Indicator Analysis** The RSI on the daily timeframe is at 47, indicating neutral conditions with a bearish tilt, suggesting a lack of strong bullish momentum. The MACD shows signs of weakening bullish momentum, with the MACD line approaching the signal line, which could signal a price correction. The 50-day and 200-day moving averages are converging near $3.45, which could act as a pivotal point. If the price remains below this level, the likelihood of a deeper correction increases. **Price Pattern Analysis** The descending triangle pattern on the daily chart indicates price compression. A breakdown below this pattern could generate a bearish signal, while a high-volume breakout above could confirm an uptrend. A doji candle near the $3.55 resistance suggests market indecision. A volume spike during a breakout could confirm the direction of the move. **Market and Fundamental Factors** Sui remains relevant due to its scalable layer-1 technology and parallel transaction execution, particularly in the DeFi sector. Increased adoption of decentralized protocols and potential ETF developments could boost investor confidence. However, Sui is heavily influenced by broader crypto market volatility and Bitcoin’s movements. Sui’s dominance in the crypto market, at around 0.4%, reflects its growing but limited position. Competition with other layer-1 blockchains may constrain its growth. **Outlook and Strategy** In the short term, Sui is likely to remain in a $3.20 to $3.55 range unless a high-volume breakout occurs. Traders should wait for confirmation of a breakout above $3.55 or consolidation at support levels. For long-term investors, buying at support levels, particularly around $3.20, with proper risk management, could be appealing, as Sui has the potential to reach $5.00 by the end of 2025 if network advancements continue. In conclusion, Sui is currently in a consolidation phase with a bearish tilt, but technical and fundamental signals suggest potential for a rebound if market conditions improve.