- SUI trades within a descending channel as volume drops, but compression signals a potential breakout above $4 with targets near $8.
- Technical indicators show mixed signals with MACD bearish and RSI neutral, keeping SUI’s price action at a critical turning point.
- Traders watch resistance at $4.40 and support near $2.80, as failure to break out risks extended consolidation within the channel.
SUI is reaching a critical point as compression within a descending channel signals the potential for a decisive breakout. The cryptocurrency trades at $3.61 after falling 6.62% in the latest session.
Analyst Lark Davis highlighted on X that “when SUI breaks out from this triangle it is setting up for an epic move.” He also pointed to a technical target near $8, with activation likely above $4 resistance.
SUI began October near $1.80 before rallying to highs above $5.50 in November. However, momentum slowed in December as selling pressure emerged. The token now trades between key exponential moving averages, with the 20-period EMA at $3.43 and the 50-period EMA at $4.03. These levels currently frame the consolidation zone while the longer-term moving average acts as underlying support.
Technical Indicators Show Mixed Signals
Chart analysis reveals a well-defined descending channel capped by resistance near $4.40 and support around $2.80. Price remains locked within this range, awaiting confirmation of a breakout.
Moreover, volume data shows declining participation since November, suggesting reduced conviction among traders. Such patterns often precede significant directional moves once momentum returns.
The MACD indicator highlights bearish divergence. The MACD line sits below the signal line, with the histogram showing negative pressure. Current values of -0.0264, 0.1308, and 0.1572 confirm this bearish setup.
Additionally, RSI sits at 53.31, reflecting neutral territory but moving lower from previously overbought levels. These indicators suggest ongoing weakness yet leave room for recovery if resistance breaks.
Market Structure and Price Outlook
SUI completed a full rally-correction cycle over the past two months. Consequently, its structure reflects both consolidation and continued downward pressure. Resistance near $4.40 remains the immediate barrier, while support at $2.80 provides a critical safety net. Hence, traders are watching for a breakout above $4, which could validate Davis’s $8 target.
Besides technicals, volume and momentum will dictate whether bulls regain control. Reduced participation suggests caution, but compression within the channel hints at a powerful move ahead.
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