Will SUI Soar to $3 After Completing Pullback Phase and Flag Breakout?
SUI, currently the top performer among the top 100 coins, has experienced a significant increase of 12.89% in the past 24 hours. Trading at $2.08, SUI has successfully regained the psychological threshold and now boasts a market capitalization of $5.74 billion.
With technical indicators suggesting a bullish trend and the possibility of a breakout rally in the near future, could SUI potentially reach the $3 mark?
SUI’s recent price action in the 4-hour time frame has displayed several days of consolidation during a period of high market volatility. This consolidation led to a pullback of nearly 32%, causing SUI to drop from its peak of $2.36 to a low of $1.60.
However, following a surge in Bitcoin’s price, SUI quickly bounced back and surpassed the $2 mark, experiencing a rapid V-shaped recovery. This recovery resulted in a 30% price increase, propelling SUI from $1.60 to $2.08.
Furthermore, the resistance trendline that was established during the pullback phase failed to hinder the bullish growth of SUI. As a result, the conclusion of the pullback indicates a breakout rally for SUI, as indicated by its price action.
The 4-hour Relative Strength Index (RSI) is currently approaching the overbought zone, indicating a saturation of buying pressure. This suggests that a minor pullback to retest the broken 23.60% level may occur.
Meanwhile, the 50 and 100 EMA in the 4-hour chart are poised for a bullish crossover, further strengthening the bullish sentiment. This increases the likelihood of these crucial EMAs aligning in a bullish manner once again.
The question now arises: will SUI be able to surpass the $3 threshold?
By analyzing the trend-based Fibonacci levels within the flag pattern, it is observed that SUI is currently trading above the 23.60% Fibonacci level at $1.97. However, the uptrend is struggling to gather enough momentum to reach the 38.20% level at $2.1963.
According to the retracement tool, it is likely that the SUI price will reach the 50% Fibonacci level at $2.3712, which coincides with the peak of the resistance trendline. The ultimate target for the bull run is set at the 100% Fibonacci level of $3.1125.
It is worth noting that if SUI reaches its optimistic target of $3.112, it would represent a significant gain of 52.4% from its current price of $2.04. However, before reaching this target, a crucial resistance level exists at $2.79, which corresponds to the 78.60% Fibonacci level.
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