SUI has been trading below a critical level at $2.3 since it last got there in mid-October. Now that the price is below this level again, crypto analyst, parabolic8crypto, has expressed a bullish outlook for $SUI, suggesting that the cryptocurrency could see significant gains if it breaks above the next resistance level.
In his analysis, the crypto analyst breaks down the Cup and Handle pattern, noting that it features a rounded “cup” formation. This indicates a phase of accumulation or consolidation, which is followed by a smaller “handle” that reflects a minor pullback.
According to the analyst, this setup typically signals a bullish continuation, implying that once the price surmounts the handle, a rally could ensue.
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The analyst elaborates on the concept of the measured move within this pattern. He explains that this measure involves projecting the height of the cup upward from the breakout point.
The chart includes a vertical line that marks the distance from the bottom of the cup to the neckline, which represents the resistance level at the top of the cup. His projection indicates a target price of around $10, aligning with his assertion that if the breakout occurs, $SUI could indeed reach this level.
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Furthermore, the crypto analyst points out the potential percentage gains from this movement. Reaching $10 would equate to an approximate gain of 381%, mirroring the height of the cup structure in percentage terms.
For the Cup and Handle pattern to fulfill its potential, the analyst stresses the importance of a confirmed breakout above the handle resistance level, currently around $2.3. He notes that a daily close above this level would signal the initiation of an upward trend.
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