SUI Faces Key Resistance After Impressive Rally
After a remarkable 75% surge, SUI is now encountering significant resistance. While the overall trend is still bullish, technical signs hint at a possible pause before further gains.
The recent SUI rally has been driven by strong bullish momentum. However, the price is now struggling at a critical resistance level. This area combines the range high and the 0.618 Fibonacci retracement, making it a tough barrier to break.
Historically,this zone has acted as a ceiling,and the current inability to surpass it suggests a swing-failure pattern. This could lead to a short-term pullback, which is normal in a larger bullish trend.
- Major Resistance: 0.618 Fibonacci retracement and range high
- Support Levels: $2.70 to $2.40 (range mid and VWAP support)
- Trend Structure: possible wave 3 expansion after a correction
A short-term pullback would be healthy, allowing for a higher low to form. Traders should monitor the VWAP support, range mid, and 0.618 retracement as potential launch points for the next rally.
Currently, the market is in a balancing phase, with buyers and sellers competing around key levels. This often leads to a volatility breakout. Traders should look for volume spikes and candle formations near support for early signals.
While the recent rally was strong, volume has started to decline, supporting the idea of consolidation or a correction. The price is trading within a $2.70 to $2.40 range and may stay there until a clear break occurs.
Traders should remain patient. The pullback structure will offer clues about the next move. A break above the swing high would negate the pullback theory, while a bounce from support could signal more upside.
