SUI, a notable player in the cryptocurrency market, has caught the attention of traders with its current price movement. Despite a 4.89% dip in the past 24 hours, the token has achieved an impressive monthly gain of 24.75%, signaling strong bullish momentum in the broader trend.

Currently trading within a symmetrical triangle pattern, SUI appears to be preparing for a significant price breakout. If the market conditions align, the token could rally toward its next potential target of $4.96.

Symmetrical Triangle: A Setup for Growth?

On the 4-hour chart, SUI’s price action reveals a symmetrical triangle, a technical formation where the price moves within two converging trendlines. The upper trendline serves as resistance, while the lower acts as support. This pattern often reflects market indecision, eventually leading to a breakout.

For SUI, the next steps hinge on its ability to establish a strong support base. Two key levels are under watch:

1. Lower Trendline Support: SUI may test the lower boundary of the triangle, seeking confirmation of support before an upward move.
2. Historical Support at $3.926: A dip to this level could provide the foundation needed for a strong rally, propelling the price toward $4.96.

If SUI manages to breach the triangle’s resistance, it could signal the start of a bullish phase, pushing the price higher in the short term.

On-Chain Data Supports a Bullish Outlook

Adding weight to the bullish scenario is the Exchange Net flow metric, which shows a consistent negative outflow of SUI tokens. Over the past few days, approximately $26 million worth of SUI has been withdrawn from exchanges, including $7.11 million in the last 24 hours.

Negative net outflows typically indicate reduced selling pressure as traders move their tokens off exchanges, possibly preparing for long-term holding. This trend could tighten the circulating supply, paving the way for upward price movement.

Short-Term Challenges Amid Bullish Potential

While the broader trend looks promising, some short-term hurdles remain.

Open Interest Decline

SUI’s Open Interest (OI) in derivatives markets has dropped by 5.68% in the past 24 hours, falling to $677.82 million. A decline in OI suggests reduced participation in the market, as fewer traders hold active contracts.

Falling Trading Volume

Trading volume for SUI has also decreased significantly, dropping by 48.84% to $1.15 billion. Lower trading activity could reflect cautious sentiment among traders, potentially leading to short-term dips in price.

These indicators suggest that SUI may need to consolidate further before achieving a sustained breakout.

SUI Surpasses Shiba Inu in Market Cap

In a notable development, SUI has overtaken Shiba Inu (SHIB) in market capitalization. As of now, SUI’s market cap stands at $12.54 billion, narrowly surpassing SHIB’s $12.45 billion.

This achievement underscores SUI’s growing importance in the cryptocurrency landscape. If the token continues its upward trajectory, the gap between SUI and SHIB could widen, solidifying SUI’s position among the top assets.

What’s Next for SUI?

SUI’s symmetrical triangle pattern and strong on-chain metrics suggest the potential for a bullish breakout. However, the short-term decline in Open Interest and trading volume indicates that the token might first test lower support levels.

For investors and traders, the $3.926 support level and the triangle’s breakout direction are critical points to monitor. If SUI successfully breaks through its resistance, it could target $4.96, reinforcing its upward momentum.

As SUI gains traction in the market, its long-term prospects appear increasingly positive, making it a token to watch closely.