Key Takeaways
After reaching an all-time high of $2.37, SUI’s price trajectory has been turbulent, showing signs of potential recovery and deeper correction.
With indicators hinting at a possible trend reversal, the coming moves in SUI will be crucial for traders and investors alike.
The price of SUI reached its previous all-time high of $2.20 on March 28, after which it started to decline.
The downtrend lasted until Aug. 5, when the price returned to $0.46, the same area from which the previous uptrend was made.
The price fell by 79% and got oversold, as the daily Relative Strength Index (RSI) signaled.
A new uptrend began with its first higher high at $1.10 on Aug. 12 and its first higher low of $0.74 on Sept. 6.
Since then, SUI has gone parabolic, reaching a new all-time high of $2.37 on Oct. 14. However, momentum has slowed since Sept. 22, when an ascending channel formed. Bearish divergence was seen with the RSI, pointing at the uptrend’s weakness and a potential reversal.
SUI is now in a freefall, currently being traded at $1.70. Does it have more room to the downside, or was this a pullback before further uptrend continuation?
Zooming into the hourly chart, we can see that SUI could have concluded its ABC correction and is ready for an upturn. From Aug. 5, we can count three waves in the uptrend until Oct. 14, with the following downturn likely being its fourth from a five-wave pattern.
It retraced to the optimal 0.382 Fib level and advanced three waves to the downside.
This is why a new uptrend is expected to start shortly, leading SUI to a new all-time high close to $3.
However, there is still no sign of the price commencing an uptrend, and the assumption stems from the wave structure analysis.
We need to see the first minor recovery followed by a higher low above $1.80 to confirm it. Should this occur, SUI will give us the first signal of the coming sustained uptrend to a new all-time high.
But if the price continues moving down, it could mean that SUI ended its five-wave pattern on an all-time high and is now headed further down.