SUI Price Eyes $3.90 as $3.20 Support Holds Amid Supply Shrink
SUI is holding firm at the $3.20 support after retracting from its August peak of $3.90. Bulls have defended this critical level multiple times, setting up a falling wedge pattern that typically signals a bullish reversal. Analysts highlight targets at $3.53 and $3.90 on a confirmed breakout. On-chain data shows a reduction of over 1.9 million SUI through token burns and freezes, shrinking circulating supply and intensifying price pressure. While a break above the wedge’s descending trendline could spark a fresh rally, a failure to hold $3.20 may lead to further downside. Steady network growth with over 285 million accounts underscores long-term potential, keeping traders watchful for a decisive move.
Bullish
SUI’s firm defense at $3.20 and the emergence of a falling wedge pattern suggest building bullish momentum. Similar setups, such as Uniswap’s H2 2023 wedge breakout, led to significant rallies. The removal of over 1.9 million tokens via burns and freezes tightens supply, making upward moves more pronounced when demand returns. Short-term, a confirmed break above the wedge’s trendline could trigger gains toward $3.53 and $3.90. Long-term, ongoing supply reduction combined with network growth supports sustained appreciation. Only a decisive drop below $3.20 would negate this outlook, marking the scenario as broadly bullish.