On Tuesday, June 17th, the SUI price experienced a sudden drop of over 5% to hit the $2.838 mark. The bearish momentum follows Bitcoin’s steps as its price reversed from the $110,000 region amid the military tension in the Middle East. While the short-term outlook signals a downtrend correction, the SUI network TVL recorded notable growth amid a bullish pattern formation.
SUI Counters Market Trend with TVL Growth
Over the past five weeks, the SUI price has recorded a notable correction, declining from $4.29 to $2.84, representing a 34.8% decrease. Consequently, the asset market capitalization plunged to $9.7 billion.
Despite the price drop, the total volume locked on the SUI network experienced a bullish turnaround, increasing from $1.54B to $1.76B, representing a 14% growth. This surge indicates more capital is being deployed into SUI-based protocols, indicating strong ecosystem engagement.
Typically, the TVL growth reflects growing user confidence, which strengthens the network fundamentals.
Bull Flag Pattern Sets a Rally Past $3 Barrier
The daily chart analysis of the SUI price showed that the ongoing correction was resonating strictly within two converging trend lines, revealing the formation of a bull flag pattern. The chart pattern consists of a long pole denoting the dominate force in the market, followed by a temporary pullback within two trendlines to recuperate the bullish momentum.
Today, the broader crypto market took another hit as speculation arose that the United States could become involved in the Middle East conflict. As a result, the SUI price plunged to the $2.845 mark, retesting the support trendline of the flag pattern.
Historically, a retest of the bottom support trendline had renewed the bullish momentum in price and driven a bullish upswing to the other boundary. Thus, the SUI price could gain 8.7% in the coming weeks and challenge the flag resistance at $3.
A bullish breakout from this race would signal the continuation of the recovery trend and also a 38% rally to hit the $4.35 mark.
On the contrary, if selling continues to defend the overhead trendline, the current consolidation could extend to July.
