Sui (SUI) has been grappling with a significant correction since the beginning of 2025, with its price dropping over 32% in the past four weeks. The decline has been exacerbated by market reactions following U.S. President Donald Trump’s second inauguration. However, recent price action shows promising signs of recovery. The altcoin has rebounded by 5% over the past week, and key technical indicators suggest a potential breakout if SUI can maintain momentum.

SUI’s Struggles and Recent Rebound

Sui has faced tough market conditions since the start of the year. The large-cap altcoin, currently valued at approximately $22.8 billion, has seen substantial trading volumes of around $889 billion daily. Despite these high volumes, SUI has struggled to maintain its previous bullish momentum. On March 18, the coin traded at $2.28, with the market closely watching its next move.

Despite the market correction, SUI has shown signs of resilience, climbing 5% in the past week. The altcoin has approached a critical resistance level that could determine whether the token will continue its upward trajectory or face further downside.

Technical Analysis: Breakout Potential

From a technical perspective, SUI has been in a steady uptrend for the past two years, forming higher highs and higher lows. This established trend suggests the possibility of a future breakout if the price can clear key resistance levels.

Over the last two weeks, SUI has been retesting a significant resistance point from April 2024. This level was previously broken in October 2024, and its retesting now could be a sign that SUI is preparing for another breakout.

According to crypto analyst Ali Martinez, the price is forming an ascending triangle pattern on the 1-hour chart. This pattern often signals the potential for a breakout if the price consistently closes above $2.4. If this happens, a rally toward the next key resistance at $2.89 could follow.

On the flip side, a close below $2.2 would invalidate the bullish setup, potentially triggering a deeper correction toward the $2 level or lower.

Fundamental Outlook: Growing Web3 Ecosystem

While price movements remain the focal point in the short term, Sui’s long-term fundamentals continue to improve. The network has been steadily developing a robust Web3 ecosystem, hosting several decentralized finance (DeFi) protocols, including Suilend, NAVI, Cetus AMM, and Haedal.

Sui’s total value locked (TVL) currently stands at over $1.1 billion, a significant achievement that showcases the growing interest in the ecosystem. Additionally, the market capitalization of Sui’s stablecoin is around $654 million, further supporting the network’s development.

This growth in both DeFi protocols and total value locked strengthens Sui’s long-term outlook, despite the current volatility in its price.

Conclusion

Sui’s price action indicates that it may be on the verge of a breakout if it can maintain upward momentum and breach key resistance levels. However, the price must hold above $2.2 to prevent further downside risk. With a growing Web3 ecosystem and a solid long-term outlook, SUI remains a potential play for investors looking to capitalize on a potential rebound. The next few days will be critical in determining whether SUI can break out to higher levels or continue to struggle under current market conditions.