The daily SUI chart displays an impulsive Elliott Wave structure, with Wave (v) recently completing its peak near $5 on Dec. 16.
The price is now entering a potential corrective phase, with retracement levels aligning with key Fibonacci support zones, suggesting the possibility of consolidation or further pullback.
SUIUSD in an ascending channel | Credit: Nikola Lazic/TradingView
Fibonacci levels of interest 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 Wave (v) peak, supporting the likelihood of a correction.
Wave (v) completion signals the possibility of a new corrective wave. A breakdown below ascending support around $3.67 could indicate 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.
Key levels to watch include $3.67 (0.382) and $3.28 (0.5 Fibonacci).
This hourly SUI chart highlights price consolidation within an ascending channel. However, if we examine the chart closer, we may find that Wave (v) has not yet been completed.
The structure suggests an imminent breakout, which could continue the bullish momentum in Wave (v) or result in a corrective downward move.
SUIUSD symmetrical structure forming | Credit: Nikola Lazic/TradingView
Key Fibonacci levels indicate potential support and resistance zones. Immediate resistance lies at $4.94, while deeper support levels are at $4.15 (0.236 Fibonacci), $3.67 (0.382 Fibonacci), and $3.28 (0.5 Fibonacci).
A breakout above the wedge could propel the price toward $6.00, while a breakdown may signal further downside.
More sideways movement will be expected in the short term as the price should approach the symmetrical triangle apex.
After the breakout direction is shown, we will see which scenario is more likely.
Key Observations:
Price is consolidating in a symmetrical wedge pattern.
Resistance lies at $4.94, with a target of $6.00 if broken.
Support levels to watch: $4.15, $3.67, and $3.28.
RSI is neutral, signaling no clear momentum bias.
Wedge breakout direction 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.
