SUI is showing a combination of technical and network-activity signals that could point to a potential trend reversal, according to crypto market analyst Ali Charts. The setup includes a monthly Tom DeMark Sequential buy signal, a developing bullish candlestick pattern and a sharp increase in SUI active addresses.
The signals arrive after SUI spent much of August consolidating and declining from levels above $0.70. Market data shows SUI trading around the $0.70–$0.75 area on August 21, with technical indicators currently leaning bullish.
However, the setup should be treated as a potential reversal rather than confirmation of a sustained rally. Technical indicators can identify conditions in which momentum may change, but they cannot guarantee that SUI will continue higher.
SUI Monthly Chart Flashes a Potential Reversal Signal
The most notable development highlighted by Ali Charts is a Tom DeMark Sequential buy signal on SUI’s monthly chart.
The TD Sequential is designed to identify potential exhaustion in an existing trend. A buy signal appearing after a prolonged decline can suggest that selling pressure is losing momentum and that a reversal may be developing.
Monthly signals are particularly significant because each candle represents an entire month of trading activity. That makes them slower to develop than daily or weekly signals, but potentially more meaningful when they coincide with other evidence.
Ali Charts also points to a developing morning doji star formation on SUI’s monthly chart. This is a three-candle pattern traditionally associated with possible bullish reversals following a downtrend.
Related: Why Traders Are Watching SUI Closely After 36% Rally
Neither indicator should be interpreted in isolation. A reversal pattern becomes more interesting when price action, volume and network activity begin pointing in the same direction.
There are already signs of improving momentum. CoinMarketCap reported that SUI gained more than 10% during the broader market move on August 20, with the token breaking higher from a consolidation area around $0.65 to $0.70.
Current technical readings also lean positive. Investing.com’s August 21 analysis showed a “Strong Buy” summary for SUI/USD, with all 12 listed moving-average signals indicating buy conditions.
That does not mean SUI has already entered a confirmed long-term uptrend. It does, however, suggest that the short-term technical structure has improved considerably.
SUI Active Addresses Surge More Than 250%
The technical setup becomes more interesting when combined with on-chain activity.
According to the data cited by Ali Charts from Token Terminal, SUI active addresses increased from 66,886 to 231,272 over the previous week, representing an increase of more than 250%.
A rise in active addresses can indicate that more wallets are interacting with a network. On its own, however, it does not necessarily mean that token demand is increasing. Address activity can be driven by many factors, including applications, trading, incentives, transfers and automated activity.
The important point is that network usage is accelerating at the same time that SUI’s monthly chart is showing signs of potential exhaustion in its previous downtrend.
SUI’s recent price history provides some context. The token traded around $0.67–$0.69 through much of mid-August before the broader market move pushed it higher. Historical data shows that SUI repeatedly struggled around the $0.69–$0.70 region during August.
A sustained move above that area would therefore be important for traders watching whether the latest rebound develops into something larger.
Related: Sui Powers African Access to Tokenized Real-World Assets
There is also a risk on the other side. Current derivatives data shows meaningful liquidation exposure below the market, including approximately $1.1 million in cumulative long liquidations around $0.664 on HyperLiquid. Above the market, liquidation clusters remain comparatively smaller near $0.77–$0.81.
That means a failure to maintain the recent recovery could quickly test lower support levels.
For bulls, the ideal scenario would be continued network activity, stronger demand and a clean move through nearby resistance. If those conditions develop together, the monthly reversal setup could become more credible.
For now, the SUI thesis is still about convergence rather than certainty. The monthly TD Sequential signal provides the technical backdrop, the developing doji-star formation suggests possible exhaustion of sellers, and the reported increase in active addresses provides evidence that activity across the network is accelerating.
The next question is whether those signals translate into sustained buying pressure.
If they do, SUI could be entering an important phase after weeks of weakness. If they do not, the current setup could simply become another temporary rebound within a broader consolidation.
For investors, that distinction matters. A bullish indicator is a signal to watch the market—not proof that a rally is guaranteed.
About The Author
