Sui (SUI) Testing Descending Channel Resistance — Breakout Likely Ahead

Key Takeaways

• Descending wedge breakout signals trend reversal.
• Key resistance at 0.5 Fibonacci retracement ($2.89).
• Potential corrective pullback before a larger bullish move.
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SUI is showing signs of potential trend reversal after completing a corrective phase.

The 4-hour chart outlines a completed ABCDE correction within a descending wedge, while the 1-hour chart reveals a breakout attempt with an Elliott Wave structure forming.

Key Fibonacci retracement levels will be crucial in determining the next major move.

SUI Price Analysis

The 4-hour chart reveals that SUI has formed a five-wave impulsive structure, peaking at $5.35 on Jan. 6 before entering an ABCDE correction.

Price action has stabilized near the 0.618 Fibonacci retracement level at $2.31, a critical support zone for a potential reversal.

A descending channel pattern has developed over recent months, with wave E touching the upper boundary.

The 4-hour Relative Strength Index (RSI) is attempting a recovery from oversold conditions, suggesting that selling pressure may be waning.

If SUI successfully breaks out from this descending channel, it could signal the end of the correction and the beginning of a new bullish cycle.

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Fibonacci retracement levels show that a move above $2.89 (0.5 retracement) would validate the bullish scenario.

However, failure to reclaim this level could result in prolonged consolidation.

Key support lies at $2.31, aligning with the 0.618 Fibonacci level. A drop below this could see further downside, with $1.48 (0.786 Fibonacci) acting as the last significant support.

SUI Price Prediction

Zooming into the 1-hour chart, SUI shows early signs of a potential breakout from a local ascending structure.

The Elliott Wave count indicates that a five-wave sequence was recently completed at $2.50, suggesting that a corrective (a)-(b)-(c) pullback may be in play before a renewed uptrend.

The price may retrace toward the $2.31 level (0.618 Fibonacci) in the short term, forming a higher low.

If wave (c) completes near $2.31 and holds, the next impulsive wave could target the $2.89 region, aligning with the 0.5 Fibonacci retracement from the broader downtrend.

A successful breakout above $2.89 would open the door to higher targets, with the 0.382 Fibonacci at $3.47 acting as the next major resistance.

The primary bullish target remains near the previous highs above $5.00.

However, if the corrective wave extends below $2.31, the bullish outlook would weaken, and a retest of the $1.48 level (0.786 Fibonacci) may become likely.

Key Levels to Watch

• Immediate Resistance: $2.89 (0.5 Fibonacci retracement).
• Key Support: $2.31 (0.618 Fibonacci retracement).
• Critical Support: $1.48 (0.786 Fibonacci retracement).
• Short-Term Target for Wave (iii): Above $2.89 if correction holds.
• Invalidation Zone: Below $2.31, risking further downside.