Sun Token (SUN) at Critical Support Level: Reversal Likely as Triangle Holds

Key Takeaways

• Descending wedge pattern nearing completion
• RSI shows oversold conditions, signaling a potential reversal
• Breakout above key Fibonacci resistance could confirm bullish momentum
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SUN has been trading within a prolonged corrective structure following its peak, showing a descending triangle formation.

The current price action indicates that it may be nearing the end of its correction and has the potential for a breakout.

The analysis below will assess the overall market structure and project possible price pathways based on technical indicators and Elliott Wave Theory.

SUN Price Analysis 

The daily chart of SUN displays a clear five-wave Elliott Wave impulsive move, culminating in a peak near $0.046. Following this, the price entered a corrective phase, forming an extended corrective structure that appears to be concluding.

The correction found support around $0.016, slightly above the 0.786 Fibonacci retracement level from its previous rally.

A descending flat triangle pattern is evident, with price action recently testing its lower horizontal support boundary. The Relative Strength Index (RSI) has been hovering in oversold territory, suggesting selling exhaustion.

Additionally, volume appears to be diminishing, which often precedes a breakout. If SUN manages to sustain support near the current level, it could indicate the formation of a long-term bottom.

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The correction structure suggests a potential completion of wave Y, meaning a new impulsive wave could be in the early stages of development.

For confirmation, the price must break above the descending trendline and reclaim the 0.618 Fibonacci level at $0.020.

If this happens, it could trigger renewed bullish interest, leading to further upside movement.

SUN Price Prediction 

On the 4-hour chart, a smaller descending wedge has formed within the larger corrective structure, reinforcing the possibility of a breakout.

The corrective Elliott Wave count indicates that wave e of a contracting triangle may have concluded, suggesting the next move will likely be upward.

If the breakout occurs, the initial target lies at the 0.5 Fibonacci retracement level around $0.025. Further resistance is located at $0.030 (0.382 Fibonacci level), followed by a stronger barrier at $0.035 (0.236 Fibonacci retracement).

Given this correction’s deep retracement, an impulsive wave (1) could push toward these key resistance levels.

However, failure to maintain the $0.016 support could invalidate this scenario and lead to further downside toward the 1.0 Fibonacci retracement level near $0.005.

The RSI on the 4-hour timeframe remains relatively low but has started to curl upward, supporting the case for an upward breakout.

A decisive move above the descending trendline, coupled with increasing volume, would confirm a trend reversal. If momentum sustains, the price could rally toward the mid-$0.020s soon.

This setup presents a compelling potential for a bullish breakout if key resistance levels are reclaimed. Monitoring RSI and volume will be crucial in confirming this upward move.

Key Levels to Watch

• Immediate Resistance: $0.020 (0.618 Fibonacci level).
• Secondary Resistance: $0.025 (0.5 Fibonacci retracement).
• Major Resistance: $0.035 (0.236 Fibonacci retracement).
• Immediate Support: $0.016 (current structure low).
• Critical Support: $0.013 (0.786 Fibonacci retracement).
• Breakout Target: Above $0.025 if bullish momentum holds.
• Invalidation Zone: Below $0.013, signaling further downside.