SUI, a well-known cryptocurrency, is showing signs that it could drop to $2 before any potential rally. The current price action mirrors a pattern observed in April 2024, where the cryptocurrency faced a decline before bouncing back. The price has approached a crucial support level around $3, and if history repeats itself, it could fall below this mark, possibly testing $2 or even lower, before reversing course.

Historical Patterns Indicate a Potential Decline

SUI’s recent price action has drawn comparisons to its movements in April 2024, where the cryptocurrency saw a sharp ascent followed by a gradual decline. This pattern suggests that SUI may soon test lower levels, including the $2 mark, before any significant upward movement takes place. Such behavior is typical of volatile assets like SUI, where quick and sharp price shifts can occur.

If the price breaks below the $3 support level, it could signal further declines, reaching the $2 level or lower. However, as seen in the past, these dips often present buying opportunities as they precede market recoveries.

Support Levels and Reversal Potential

The $3 support level is crucial for SUI. If it holds and the price stabilizes above it, this could indicate the start of a recovery phase, eventually leading to a rally beyond the $5 level. On the other hand, if the price breaks below this critical support, it could signal continued bearish trends and further declines.

SUI’s price action has historically shown the potential for swift recoveries after significant dips. If the price holds steady near the $2 level, it could set the foundation for a potential upward rally in the near future.

Growth in DEX Volume Indicates Market Interest

Despite the possibility of a price drop, SUI has been showing strong growth in other areas. As of February 17, 2025, the cryptocurrency’s total decentralized exchange (DEX) volume reached $61 billion, marking an 18.89% increase in the past month. This surge in volume indicates growing investor interest and heightened market participation.

Since May 2024, SUI’s DEX volume has seen a substantial rise from below $20 billion. This increase is a positive indicator, as higher trading volume leads to more liquidity in the market, making it easier for investors to buy and sell SUI without causing significant price fluctuations. Increased liquidity is critical for the stability and sustainability of SUI in the long term, as it makes the asset more attractive to both retail and institutional investors.

User Adoption Continues to Grow

Another positive sign for SUI is its increasing user adoption. The cryptocurrency surpassed 55 million total accounts as of February 2025, with over 700,000 new accounts created in a 24-hour period. This rapid growth in users is a strong indicator of the network’s value and its potential for continued expansion.

Higher user adoption leads to more transactions on the network, further driving demand for SUI. As more people use SUI for decentralized finance (DeFi) applications, its value could rise, supporting long-term price growth even if short-term dips occur.

Conclusion: A Dip Could Lay the Groundwork for a Future Rally

While SUI’s price may dip to $2 in the short term, this could set the stage for a significant rally in the future. The cryptocurrency is experiencing growth in key areas, such as DEX volume and user adoption, which suggest that it has long-term potential. As the market for SUI matures and liquidity continues to expand, its price could stabilize and eventually rise beyond current levels.

For investors, any potential dip could present an opportunity to accumulate SUI before a potential upward shift. Despite short-term volatility, the cryptocurrency’s increasing market activity points to a promising future.