The daily SUI chart reveals an impulsive Elliott Wave structure, with Wave (v) recently reaching its peak around $5 on Dec. 16.
The price is now entering a potential corrective phase, with key Fibonacci retracement levels suggesting possible consolidation or further pullback.
SUIUSD and an ascending channel | Credit: Nikola Lazic/TradingView
Notable Fibonacci levels to monitor include $4.16 (0.236), $3.67 (0.382), and $3.28 (0.5). The daily Relative Strength Index (RSI) shows bearish divergence, indicating weakening momentum at the peak of Wave (v), further supporting the likelihood of a correction.
The completion of Wave (v) signals a potential corrective wave. A breakdown below the ascending support around $3.67 could lead to deeper corrections, while a hold above $4.15 may confirm strong bullish support for future upward movements.
Key Observations:
Wave (v) peaked near $5, signaling a potential correction.
The key Fibonacci levels to watch are $3.67 (0.382) and $3.28 (0.5).
The hourly SUI chart shows price consolidation within an ascending channel. A closer look suggests that Wave (v) may not yet be complete.
The structure hints at a potential breakout, extending the bullish momentum in Wave (v) or leading to a corrective downward move.
SUIUSD hovering below descending resistance | Credit: Nikola Lazic/TradingView
Key Fibonacci levels provide support and resistance zones to watch. Immediate resistance is at $4.94, with deeper support levels at $4.15 (0.236 Fibonacci), $3.67 (0.382 Fibonacci), and $3.28 (0.5 Fibonacci).
A breakout above the wedge could push the price toward $6.00, while a breakdown may signal further downside.
In the short term, the price will likely experience more sideways movement as it approaches the apex of the symmetrical triangle.
Price is consolidating within a symmetrical wedge pattern.
Resistance at $4.94, with a potential target of $6.00 if broken.
Support levels to monitor: $4.15, $3.67, and $3.28.
RSI is neutral, signaling no clear momentum bias.
The direction of the wedge breakout will determine the next trend.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis.
Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information.
