SUI Token Targets $6 After Consolidating at Key Support Near $3.97

• The coin is consolidating near $3.97, forming a strong base for potential growth.  
• A rally to $5.38 and $6.50 is likely if the ascending trend remains intact.  
• Key support at $3.97 must hold, or the structure risks a bearish breakdown.  

The SUI token has entered a pivotal phase, daily consolidating within a well-defined ascending channel. The current price hovers around $4.9327, retracing from the recent high of $5.1429. 

With the token approaching the critical support level at $3.9775, the setup signals a high-probability-long opportunity. Analyst Rose Premium (@VipRoseTr) highlights this technical configuration, pointing to a potential bullish continuation targeting key levels of $5.3889 and $6.5051 if the structure holds firm.  

This setup demonstrates a classic accumulation phase, where the price action closely resembles Fibonacci retracement levels. The pullback currently rests near the 0.618 Fibonacci level at $4.117, further enhancing the probability of a rebound. However, a breach below $3.9775 may invalidate the setup, with $3.5547 acting as the ultimate stop-loss for bullish positions. The chart structure suggests traders should monitor the support zone for strong buy signals before the next leg is higher.

The Technical Breakdown: Why SUI Is Primed for a Rally

The SUI token has respected its ascending channel since early November 2024, establishing consistent higher and low highs. This trend showcases the token’s resilience and growing investor interest. The channel’s upper boundary at $6.00 aligns with the bullish target, while the lower boundary reinforces the critical support near $3.9775. Rose Premium emphasizes that maintaining this support zone is crucial for the token’s upward trajectory.

The pullback from $5.1429 to the 0.618 Fibonacci level marks a healthy correction within the uptrend. This retracement is often considered a prime entry point for traders, signaling the continuation of the bullish trend. The use of Fibonacci levels, coupled with the channel structure, provides a confluence of support, making the setup more robust.

Bullish Targets and Risk Management

Rose Premium’s analysis identifies $5.3889 and $6.5051 as the next bullish targets. The first target represents a modest breakout above the current swing high, while the second target aligns with the upper boundary of the ascending channel. These levels indicate potential gains of 9.2% and 31.9%, respectively, from the current price of $4.9327.

Risk management is paramount in this setup, with $3.9775 as an invalidation level. Should the price breach this level, the stop-loss at $3.5547 offers additional protection. Traders are advised to position themselves accordingly, ensuring that potential losses are minimized in case of a breakdown.

The Broader Implications for SUI

The SUI token’s technical setup suggests that it is building momentum for a significant upward move. If the accumulation phase near $3.9775 resolves to the upside, it could spark a bullish continuation, attracting both short-term traders and long-term investors. However, failure to hold the key support levels may increase selling pressure, challenging the token’s bullish narrative.

In the words of analyst Rose Premium, this setup represents “strong accumulation before the next leg higher.” With precise technical analysis and robust risk management, traders can capitalize on this opportunity while navigating the potential challenges.