Sui (SUI) price has broken out of a long-term formation and confirmed the previous important resistance zone as support. It is expected to continue rising in the near future.
Daily View
altcoin It has been trading in a falling wedge since June 10, 2023. This is a bullish pattern that leads to breakouts in most cases.
In fact, the SUI price broke above the wedge formation on October 28, marking the end of the downtrend.
The price then continued to rise and climbed above the key $0.51 resistance zone. Yesterday confirmed this zone as support (green arrow) and formed a bullish engulfing formation. This suggests that SUI price may have started a new uptrend.
The daily RSI has created a hidden bullish divergence and above 50 supports the potential for further gains.
If so, the next important resistance zone to watch is the top of the $0.87 wedge formation, which is 50.63% higher than the current price.
The 4-hour chart shows that SUI has been trading within a descending parallel channel since the local high of $0.66 formed on November 13. This formation often contains corrective structures and in most cases leads to breakouts.
Koinfinans.com As we reported, the price is currently being rejected by the resistance of the channel. If a minor correction occurs, it is possible for the price to retest the middle line of the channel 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, SUI price is likely to soon break above the current descending parallel channel and move towards the nearest resistance at $0.66.
In conclusion
The most likely scenario sees the SUI price breaking above the current short-term formation. In this context, it shows that it will continue to rise in the near future. The immediate target is $0.66, with the potential to reach $0.87 later.
It is possible that this bullish view could be invalidated if SUI price breaks below the important $0.51 support zone.