SUI appears to be staging a modest recovery after breaking below support that pushed prices down to the $3.1465 level in early May.
Currently trading at $3.3296, SUI is attempting to regain upward momentum but faces significant resistance from both Fibonacci levels and moving averages overhead.
This level represents the initial resistance zone that bulls need to overcome for confirmation of a sustained recovery. The next major barriers lie at the 50% retracement level ($3.4583) and the 61.8% Fibonacci level ($3.5319), both of which coincide with previous support zones that may now act as resistance.
SUIUSD Breakdown Retest
The SUI descending wedge pattern, which formed from early May, saw consistent lower highs and lower lows until price reached the pattern’s apex around $3.1465. The subsequent bounce from this level indicates potential exhaustion of selling pressure and suggests that buyers have stepped in at what they perceive to be bargain prices.
The shaded horizontal zone around $3.3000-$3.4000 appears to be an area of historical significance, having previously served as both support and resistance. SUI’s ability to establish a foothold above this zone will be crucial for its near-term prospects.
Both the 100 SMA and 200 SMA are trending downward and positioned above the current price, with the 100 SMA below the 200 SMA in a bearish alignment. The 100 SMA is located around $3.4200, while the 200 SMA sits near $3.5000, creating a significant resistance cluster that coincides with the 50% to 61.8% Fibonacci retracement levels.
Potential SUIUSD Price Scenarios
The stochastic oscillator is showing encouraging signs for bulls, having recently moved upward from oversold territory. The oscillator has room to climb before reaching overbought conditions, potentially supporting further price advances in the near term.
Meanwhile, the MACD indicator in the middle panel shows signs of bottoming out, with the histogram bars becoming smaller and potentially setting up for a bullish crossover. However, both the MACD line and signal line remain below the zero level, suggesting that bearish momentum still dominates the overall picture despite recent improvements.
For traders assessing potential entry or exit points, the completed SUI descending wedge offers a technical projection. Typically, the expected price target for such patterns is equivalent to the widest part of the wedge, which in this case could target the $3.5500-$3.6000 range if the recovery gains traction.
However, multiple resistance levels stand in the way of such a move. The immediate challenge lies at the 38.2% Fibonacci level ($3.3848), followed by the psychologically important $3.4000 level and the 50% retracement at $3.4583. A decisive break above these zones, particularly on increased volume, would strengthen the bullish case and potentially set the stage for a test of the 61.8% Fibonacci level at $3.5319.
On the downside, the $3.2500-$3.3000 range should provide immediate support. A failure to hold above this zone could signal another test of the recent lows near $3.1465, which represents the 0% Fibonacci level and the completion point of the descending wedge.