SUI broke out from a descending trendline two days ago in what was a strongly bullish signal. However, the bullish momentum that followed was not strong, with the price struggling to break above a key resistance (the white rectangle in the chart).
This setup leaves SUI with two possible scenarios in the short term:
Scenario 1: The price eventually breaks above the resistance rectangle, which is expected to make the price spike further up.
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Scenario 2: The resistance holds the price, and we see a retracement back to the broken trendline. At this point, buyers will be hoping the trendline holds as support.
Technical Indicators Give Bullish Hopes
The price has broken above the 50-day SMA on the daily chart. However, the 100-day SMA is still serving as resistance to further price growth, just at the point where the current resistance is holding.
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Show more +The relative strength index is at 63, showing that there is some room for the price to run before it gets overbought. This supports the possibility of a bullish run.
So far, the current resistance at around $0.86 to $0.91 looks like the major barrier to price rally at this point. A breakout above it should trigger a 20% spike to the next major resistance level.
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