Key Takeaways
- SUI broke out from a 108-day resistance trend line.
- The price has increased by over 70% since its April lows.
- Will the SUI price increase continue toward $4?
SUI has been one of the best-performing assets in the crypto market this week, with nearly 70% gains and breaking out from a 108-day resistance trend line.
Yesterday, the SUI team announced positive news regarding developments in the Bitcoin-powered DeFi (BTCfi) crypto sector.
SUI announced partnerships with Lombard Finance, RedStone, Cubist, and Babylon, highlighting its leading position in BTCfi.
Considering that, let’s analyze the SUI price action and determine how long the coin will sustain its momentum.
SUI Price Breaks Out
The daily time frame analysis gives a bullish SUI price prediction for several reasons.
Firstly, on April 7 (black circle), the price deviated below the $2.05 horizontal support area, falling to a low of $1.71.
However, it has increased since, reclaiming the horizontal support area and creating a higher low.
Today, the price of SUI broke out from a 108-day descending resistance trend line, reaching a high of $2.97.
The coin is approaching its primary resistance of $3.25, above which SUI has not traded since February.
Technical indicators suggest a bullish outlook. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are above average and bullish territory.
Moreover, the indicators generated bullish divergence (orange) before the breakout, legitimizing it.
The daily time frame suggests the SUI price increase will continue. The wave count shows the following targets.
Correction Has Ended
The daily time frame wave count supports the ongoing breakout, suggesting the SUI rally will continue.
According to the count, SUI has completed a five-wave downward movement (red) since its all-time high.
While this means the long-term SUI trend is bearish, it also suggests the coin has started a corrective rally (green).
If the count is accurate, SUI is in wave A of an A-B-C structure (green), taking the price to the 0.618 Fibonacci retracement resistance at $3.98.
The sub-wave count is in black, indicating the SUI price is in sub-wave three of five.
So, the most likely outlook is an SUI increase toward the 0.5 Fibonacci retracement resistance at $3.54, completing wave A.
Afterward, wave C could end near the 0.618 Fibonacci retracement resistance level at $4.
SUI to $4
The SUI price has shown significant strength by breaking out from a 108-day descending resistance trend line.
SUI’s wave count and price action suggest the coin will continue increasing.
While SUI may reach a local top at $3.54, the most likely prediction suggests the price will reach $4 soon.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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