The cryptocurrency market is currently experiencing significant selling pressure, with both Bitcoin (BTC) and Ethereum (ETH) seeing substantial drops. Bitcoin has fallen over 6%, while Ethereum has plunged more than 9% in the last 24 hours. This broad market correction has led to over $1.11 billion in liquidations, with long positions bearing the brunt of the losses, amounting to more than $978 million wiped out in a single session.
This period of intense volatility has placed considerable strain on major altcoins, including the Layer-1 token Sui (SUI), which is presently trading down over 10%.
Despite the sharp decline, the chart analysis reveals a compelling pattern. Sui's current price structure bears a striking resemblance to a bullish fractal observed on Solana (SOL) shortly before its significant breakout in late 2024. This similarity suggests that SUI might be poised for a similar reversal pattern, provided that key support levels are maintained.
Fractal Setup Hints at a Bullish Reversal
As depicted in the accompanying charts, SUI's recent price movements are remarkably similar to Solana's consolidation phase from the previous year. Solana spent an extended period within a wide descending triangle, repeatedly testing the same base support range while consistently trading below its 200-day moving average.
Eventually, SOL managed to reclaim its 200-day moving average and successfully broke through the downtrend line. This breakout initiated a rapid upward surge of over 46%, fundamentally shifting market sentiment and launching a sustained bullish phase for the asset.
SUI currently appears to be forming a comparable accumulation structure based on a descending triangle. The price is testing a critical historical support zone situated between $1.71 and $1.91. This particular region has historically seen buyers step in to defend the range on multiple occasions. Despite the prevailing weakness in the broader market, this zone continues to serve as a foundational support for SUI.
What's Next for SUI?
If SUI's price action continues to follow the precedent set by Solana's previous fractal behavior, the current structure could represent an initial accumulation phase preceding a more substantial upward movement. Maintaining a position above the support area of $1.71–$1.91 would serve as the primary indicator that the downward momentum is beginning to decelerate.
Following this, the subsequent crucial step would involve retesting the 200-day moving average, which is currently located near $3.27. A successful reclamation of this significant technical level would substantially enhance the bullish outlook and potentially pave the way for a breakout above the descending trendline resistance.
A confirmed breakout from the triangle pattern would then open up possibilities for a much larger rally, with potential targets in the $6.80–$7.00 region. This price range aligns with previous resistance levels and mirrors the scale of expansion that Solana experienced after its own breakout.
However, it is important for traders to remember that fractal patterns are observational tools and do not offer guaranteed outcomes. Factors such as overall market sentiment, liquidity conditions, and broader macroeconomic events will play a critical role in determining whether SUI adheres to the anticipated pattern or deviates from it.