According to Ali, SUI is currently trading within a rising parallel channel. This suggests a potential bounce that could propel the price to around $2.60. However, he points to some key levels and how this potential upward move could become breached.
Let’s look at the details of his tweet and the accompanying chart.
What you'll learn 👉
Key Price Levels
Support Level at $2.00: This critical support area has been tested multiple times. Ali underscores its significance; a fall below this level would suggest a break from the upward trend, potentially leading to bearish momentum.
Conversely, a strong bounce from this support would indicate that buyers remain in control, reinforcing the bullish outlook
Resistance Around $2.60: The analysis points to the potential for SUI to rise toward the upper trendline of the channel, near the $2.60 mark.
At this level, traders may begin to take profits, which could prompt a pullback. If SUI struggles to break through this resistance, it might signal the peak of the current bullish movement.
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Price Action Observations
Ali notes a pattern of higher highs and higher lows on the chart, a clear bullish indicator. This pattern shows that each dip is met with buying pressure, sustaining upward momentum. Recently, the price bounced off the lower trendline near $2.00, signaling that buyers are defending this crucial support zone, suggesting further upward potential.
Bullish Scenario: If SUI continues to respect the support levels and the lower trendline, it may maintain its upward trajectory toward $2.60 or even higher. A breakout above this level could trigger more aggressive buying, potentially leading to new local highs, contingent on strong buying volume.
Bearish Scenario: Conversely, if SUI falls below the $2.00 support level, it could invalidate the bullish channel, indicating increased selling pressure. A breakdown below this level might lead to lower support levels, possibly around $1.80 or $1.70, and suggest a trend reversal towards bearish sentiment.
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Volume: A significant increase in trading volume would be crucial for a robust upward move, especially near resistance levels like $2.60. A higher volume would validate a bullish breakout, indicating strong buyer participation.
Conversely, a decrease in volume near the $2.00 support could suggest weakening buying pressure, elevating the risk of a breakdown.
Midline Interaction: The midline of the channel serves as a critical pivot point. If SUI remains above this midline, the bullish trend is likely to persist. However, dropping below it could lead to further declines toward the lower trendline.
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