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.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
