Is SUI Ready for a Massive Breakout? | Credit: Hameem Sarwar
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Key Takeaways
SUI broke out from a descending resistance trend line.
The price is attempting to break out above the $4.05 resistance.
Has SUI reached its cycle bottom, and can it reach new highs this cycle?
SUI is showing signs of a major bullish reversal after weeks of correction.
The price recently broke out of a descending resistance trend line and is now testing the crucial $4.05 horizontal level.
With strong technical momentum building, a breakout from the $4.05 resistance could open the floodgates to new highs.
SUI Price Analysis
SUI’s price has fallen since July (black circle), when it deviated above the $4.05 horizontal resistance area.
After its decline, SUI validated the area as resistance in August and then accelerated its rate of decrease.
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The correction continued until SUI’s price fell by 30%, reaching a low of $3.11 on Sept. 1.
SUI has increased since then, breaking out from the diagonal resistance this week.
Currently, SUI is nearing the $4.05 horizontal resistance area, which is the most important horizontal level because it has provided resistance for so long.
If SUI clears it, it could rapidly increase toward its all-time high, more than doubling.
Momentum indicators support this increase. The Relative Strength Index (RSI) crossed 50 (black circles), and the Moving Average Convergence/Divergence (MACD) made a bullish cross.
So, the daily time frame technical analysis gives a bullish SUI prediction, suggesting that new highs are likely soon.
What’s Next for SUI?
The weekly time frame shows that SUI is in the fifth and final wave of an upward movement (green) that started in October 2023.
Because of the overlap between waves one and four, the entire increase is likely a leading diagonal, as evidenced by the ascending wedge shape.
If this is the case, it makes even more sense for the short-term SUI correction to be over, since the price trades at the support trend line of this wedge.
An important ratio is that wave three has been 1.61 times the length of wave one. When wave three extends, wave one usually has the same length as wave one.
Therefore, a potential target for the top of the rally is $10.83, which also reaches the diagonal resistance of the proposed wedge.
In the short-term, SUI has completed a 1-2/1-2 wave structure, meaning the most rapid portion of the upward movement comes next.
Once the SUI price deviated above $4.05, it was possible that the price had completed an A-B-C structure and had begun a downward movement.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
