As the SUI price approaches a potential channel breakout, marking the end of its pullback phase, buyers are hopeful for a rally toward the $4 level.
Amid the recent crypto market pullback triggered by Bitcoin’s decline, SUI has struggled to overcome its local resistance. With a breakout on the horizon, SUI is losing critical momentum, potentially delaying its recovery.
Although the SUI project holds a market cap of $10 billion, it has experienced a 9.14% weekly loss. The question now is whether the breakout rally will be enough to recover the 7-day loss and trigger a new bullish run.
SUI Price Analysis Hints At Channel Breakout
On the daily chart, the SUI price shows a falling channel pattern. Within this pattern, SUI has dropped from its swing high of $5.13 to the 200-day EMA near the $3 psychological level.
This decline wiped out more than 40% of its value in just three weeks. However, the recent bounce off the 200-day EMA and the psychological support at $3 suggests a potential breakout rally could be on the horizon.
Currently trading at $3.26, SUI has pulled back 1.82% intraday due to overhead supply. Nevertheless, the recent recovery has seen two consecutive positive candles, reflecting an 11% surge.
This indicates significant underlying bullish momentum in SUI’s price trend. Moreover, the MACD and signal lines are on the verge of a positive crossover, signaling a potential shift in trend momentum.
Given the volatility in the broader crypto market, a confirmed breakout from the falling channel could amplify buying pressure. This further bolsters recovery prospects for SUI.
SUI Price Target Points to $4
According to Fibonacci levels, the breakout rally from the channel will likely face resistance at the 50 EMA, which aligns with the 23.60% Fibonacci level. This level is near the $4 psychological mark, positioning it as a crucial resistance.
However, if the breakout fails to materialize, SUI may retest the 200-day EMA, with an increased risk of a breakdown. In this scenario, a drop below the $3 support level could push the price to the lower boundary of the channel near the $2.60 mark.
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