- SUI approaches $2.00, showing a converging wedge pattern, indicating forthcoming volatility.
- Unsuccessful try at recovery signals SUI must break resistance to avert plunging further to $1.50.
- A bullish breakout looms if SUI breaks above key resistance levels of $2.00, targeting more upside gains.
SUI has continued its downtrend, moving towards the 0.786 Fibonacci retracement at the circa $2.00 area. Recent price action shows a pattern of a converging wedge, which suggests that volatility is close as the market approaches a key decision point.
Downtrend Analysis and Key Levels
SUI has declined approximately 64.6% from its previous high of $6.50, reaching a current level near $2.30. The falling wedge pattern, marked by descending black trendlines, highlights the prolonged bearish trend. Attempts to recover near the 0.5 and 0.618 Fibonacci levels proved unsuccessful, with the 0.618 level around $3.80 acting as strong resistance.
The market remains uncertain, with potential upward movement relying on breaking the descending trendline. Conversely, failure to clear key resistance levels could result in further declines toward previous lows, possibly testing the $1.50 mark.
Understanding Bitcoin Market Dynamics with Expert Insights
According to market analyst Marzell, SUI has entered a key accumulation phase, which can be a potential bullish breakout. His analysis indicates a typical falling wedge pattern forming around a solid support zone between $2.00 and $1.80. This area coincides with the 0.618–0.786 Fibonacci retracement level, where the price has seen numerous rejections from the lower boundary of the wedge.
Source: Marzell
Marzell gives exact levels for a potential bullish surge, including $3.92, $4.65, and $5.60. He intends to stop-loss at $1.60 to avoid REKT, emphasizing the importance of managing risk. Additionally, Marzell states that a break above the declining resistance line could trigger a swift rally towards higher resistance levels.
Resistance Levels and Market Outlook
The 0.382 Fibonacci level at $4.20, previously, had also been a good resistance point on the downside. Further upper progress may be resisted at about $4.80, which is also the 0.5 Fibonacci retracement point. Previous market trends show probable resistance at levels of $5.00 and $5.50.
Maintaining above $2.00 is crucial for bullish optimism since failure to do so would prolong bearish pressure. Marzell’s analysis shows that breaking above key resistance levels is required to validate a bullish reversal. Overall, market conditions appear favorable for a potential breakout if the SUI price can overcome near-term obstacles.
