The price of Sui (SUI) has broken above a long-term pattern and confirmed the previous significant resistance zone as support.
It is expected to continue rising in the near future.
Daily OutlookSui (SUI) has been trading within a falling wedge since June 10, 2023. This is a bullish pattern, often leading to breakouts in most cases.
Indeed, the SUI price broke above the wedge pattern on October 28, marking the end of the downtrend.
The price continued to rise thereafter and broke above the important resistance zone at $0.51. Yesterday, it confirmed this zone as support (green arrow) and formed a bullish engulfing pattern.
This indicates that the SUI price may have initiated a new uptrend.
The daily RSI has created a hidden bullish divergence and is above 50, supporting the potential for further gains.
If so, the next significant resistance zone to watch is the peak of the wedge pattern at $0.87, which is 50.63% higher than the current price.
The 4-hour chart shows that SUI is trading within a descending parallel channel since the local high at $0.66, formed on November 13.
This pattern often contains corrective structures and usually leads to breakouts in most cases.
The price is currently being rejected by the channel’s resistance.
If a minor correction occurs, the price may retest the channel’s midline at $0.54.
The 4-hour RSI has broken above the descending resistance line and is above the 50 level. Both are bullish signals.
Moreover, such breakouts in the RSI often lead to similar breakouts in price action.
Therefore, the SUI price is likely to soon break above the current descending parallel channel and rise towards the nearest resistance at $0.6
The most likely scenario suggests that the SUI price will break above the current short-term pattern and continue rising in the near future.
The immediate target is found at $0.66, with further potential to reach $0.87.
This bullish outlook could be invalidated if the SUI price breaks below the significant support zone at $0.51.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information.
Not Financial Advice.
Cc: AZcoinnews
