Will the Bullish Technical Setup in SUI Lead to a $5 Breakout Rally Amidst Improving Network Performance and Growing Demand?

With a new all-time high of $4.87, SUI is inching closer to the $5 psychological mark. A bullish trend is in play, and SUI's decentralized exchange volumes are hitting record highs.

As SUI's price action showcases a bullish trend with new all-time highs and a rising channel pattern, a close inspection of the 4-hour chart reveals a massive V-shaped reversal within the channel. This price trend fully tested the overhead resistance trendline, leading to a new all-time high for SUI at $4.8790.

After testing the resistance trendline, the SUI price experienced a minor pullback. Based on the trend-based Fibonacci levels, the bullish recovery failed to maintain dominance above the 78.60% Fibonacci level at $4.83. This resulted in a close dip to the 61.80% Fibonacci level at $4.46.

This pullback brought the SUI price down to a low of $4.54, showcasing strong demand within this zone. The price action fully respected the Fibonacci support and closed above the $4.50 psychological mark, indicating a crucial demand zone between $4.46 and $4.54.

Meanwhile, a close examination of the price trend reveals a small recovery, with SUI currently trading at $4.633. Despite the strong recovery, this minor pullback has brought the MACD and signal lines closer together, potentially setting the stage for a bearish crossover.

Additionally, the RSI line has dropped from the overbought zone and is now testing the 14-day SMA line, indicating a potential shift in momentum.

As SUI's price action unfolds, it's noteworthy that the recent price surge has also seen SUI set a new 24-hour high in decentralized exchange volume. At $555 million, SUI has entered the list of the top 5 chains by 24-hour volume for the first time in its history.

This remarkable achievement further cements SUI's presence in the burgeoning DeFi space and its capacity to attract both builders and users.

Highlighting this achievement, Sui Network tweeted, "And one day later, Sui just set yet another new 24-hour record for DEX volume: $555,000,000! This also marks the first time that Sui is in the Top 5 of all chains by 24-hour volume."

Based on the technical setup and Fibonacci levels, a bullish continuation will likely test the overhead trendline, potentially leading to a breakout rally. In such a case, potential price targets are $5.28 and $6.61, derived from the 100% and 161.80% Fibonacci levels.

On the other hand, a drop below the 61.80% Fibonacci level would test the critical 50% level at $4.21, potentially indicating a bearish scenario.