SUN price near completing its month-long descending triangle. Will we see an upward breakout?
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Key Takeaways
SUN surged 430%, retesting October 2021’s $0.044 high.
The price stabilized above the key $0.022 Fibonacci retracement level.
A breakout above $0.035 could signal a new uptrend.
SUN Token has experienced significant price fluctuations, entering a bear market after peaking in October 2021.
Recently, a sharp recovery led to a 430% rise in SUN, but it is now consolidating, with potential signs of an uptrend forming.
SUN Price Analysis
Since reaching $0.043 in October 2021, the price of SUN has been in a bear cycle. It fell to a low of $0.0048 in October of the following year and traded horizontally to $0.0080 until February 2024.
By mid-March, it recovered to its upper horizontal level of $0.020, after which it started trending downward. In conjunction with its horizontal range, this cup and handle pattern lasted until Aug. 8, when it reached a low of $0.0086, retesting the horizontal range resistance for support.
SUNUSD formed a cup and handle from January 2022. | Credit: Nikola Lazic/TradingView
Support was present, and SUN price began to surge, rising by 430% to a high of $0.044 on Aug. 24, the same level as in October 2021, from which the previous bear phase started.
After a parabolic runup, SUN found resistance, and a downturn followed, bringing its price to a low of $0.023, where it currently sits.
SUN Price Prediction
Zooming into the hourly chart, we can see that the price stabilized above $0.022, which is the 0.618 Fibonacci retracement level from its recent high.
This could be an early sign of an upturn, although further confirmation is needed. A descending triangle was formed, the previous interaction ending as a rejection, yet the price was maintained above its recent low without falling further.
SUNUSD Near descending triangle apex | Credit: Nikola Lazic/TradingView
If another uptrend starts, the first five-wave impulse could see a breakout above the descending resistance and a high of $0.035.
Since there is a chance the increase could be a corrective one with further downside movements ahead, its length and momentum will provide insight into the future outlook.
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.
