As SUI (Sui) continues to capture the attention of cryptocurrency traders, many are wondering whether the altcoin will maintain its upward trajectory or face a short-term downturn. While SUI has been demonstrating a bullish market structure, there are signals suggesting that a drop toward the $3 mark might be on the horizon.

SUI’s Recent Price Action

At the end of April 2025, SUI showed impressive gains, reaching new highs after a period of consolidation. However, since May 2, the cryptocurrency has faced a noticeable decline, shedding around 8.8% of its value. Despite this recent pullback, SUI managed to break through its previous lower high at $2.78, signaling a bullish shift in market sentiment at that time.

The rally that took place in late April coincided with a strong surge in Bitcoin (BTC) prices, which helped propel many altcoins higher. Bitcoin rallied sharply from $85,000 to $93,000 during this period, creating favorable conditions for other cryptocurrencies like SUI. However, Bitcoin has since faced resistance around the $97,000 mark, which has led to some market retracement, including a slight decline in SUI’s price.

The Case for a $3 Price Target

Despite the bullish momentum seen in April, there are reasons to believe that SUI might face further downward pressure in the coming days, potentially falling toward the $3 mark.

1. Recent Market Dynamics: After its upward push in April, SUI appears to be consolidating at lower levels. Although it managed to break the previous lower high of $2.78, it has not been able to maintain upward movement, and recent market conditions have been less favorable. The altcoin’s price has struggled to maintain its bullish trajectory in the wake of Bitcoin’s recent price rejection at $97,000. As Bitcoin’s price retreats, many altcoins tend to follow suit, and SUI is no exception.

2. Technical Indicators: On the 1-day chart, SUI has shown several technical signs suggesting that a retracement is in play. The Chaikin Money Flow (CMF) indicator had briefly risen above +0.05, signaling increased capital flows into the market. However, this momentum has faded in recent days, and the Money Flow Index (MFI) still shows bullish sentiment, but without a strong divergence suggesting further upward movement.

   These indicators suggest that while there was positive momentum for SUI in April, the current short-term outlook may lean toward a price dip. This could bring the altcoin down to support levels near $3.06, $2.75, and even $2.45, especially if Bitcoin continues to face selling pressure.

3. Liquidity Pockets: A critical factor influencing the SUI price prediction is the liquidity heatmap, which tracks significant levels where large buy or sell orders might be concentrated. According to the 3-month liquidation heatmap, the $3.14 and $3 levels are immediate liquidity pockets that could attract the price downward. These levels are seen as crucial support zones, and many traders expect that the price will likely gravitate toward them.

   Furthermore, while the $2.8 and $2.3 levels also represent potential support zones, they may not be as strongly influential in guiding the price action as the $3 level. This further reinforces the notion that SUI may see a temporary drop to around $3 in the near term, providing a critical test of its support before any potential bullish reversal.

A Potential Buying Opportunity?

While the possibility of a drop to $3 might cause concern for short-term traders, it could also present a buying opportunity for those looking to enter SUI at a lower price. Traders who have been eyeing the cryptocurrency for potential entry points may find the $3 mark to be an attractive level to consider purchasing, especially if SUI demonstrates strong support at this price.

That being said, traders should exercise caution. The broader market sentiment, especially regarding Bitcoin, will play a significant role in shaping SUI’s future price movements. As Bitcoin’s price trends downward, SUI and other altcoins are likely to follow suit. Traders should carefully assess Bitcoin’s performance before making any decisions on SUI.

What Happens if SUI Bounces Back?

While the most likely scenario for the short term appears to be a dip to $3, traders should also consider the potential for a bullish reversal. If SUI manages to maintain its market structure and recovers from the current pullback, there is a possibility that it could target higher levels.

The $3.9 level, identified as a liquidation cluster in the heatmap, could be a potential target for bulls should SUI reverse course. A strong bounce from the $3 support level could bring SUI back into the bullish territory, with the $3.9 level serving as a key resistance point.

Conclusion: Is SUI Heading to $3?

In conclusion, while SUI has maintained a bullish market structure in recent weeks, its recent decline and the broader market’s bearish sentiment suggest that a drop to $3 is a likely scenario. Traders should monitor key support levels around $3, as well as Bitcoin’s price action, to better understand the potential for further price fluctuations.

For now, $3 appears to be the next critical level for SUI. Whether this price point will hold as support or lead to further declines will depend on the market’s reaction in the coming days. Traders should remain vigilant and prepared for either a continued downtrend or a potential reversal, depending on how market conditions evolve.