SUI Token Faces Two Scenarios as Price Struggles to Break Key Resistance
- 王林Original
- 2024-08-10 21:03:12467browse
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
Cryptocurrency technical analyst Captain Fahad has shared his latest analysis on the SUI token, highlighting two key possibilities as the token’s price struggles to break through a crucial resistance level.
According to Captain Fahad's analysis, SUI recently experienced a breakout from a descending trendline over two days ago, which was a strong bullish signal. However, the following bullish momentum was not significant, with the price encountering resistance at a key level (depicted by the white rectangle in the chart).
This setup presents SUI with two potential scenarios in the short term.
Scenario 1: The price eventually breaks above the resistance rectangle, which is anticipated to drive the price up further.
Scenario 2: The resistance prevents the price from rising any further, leading to a retracement back to the broken trendline. At this point, buyers will be hoping for the trendline to hold as support.
A breakout from the resistance zone could result in a 20% spike to the next major resistance level.
From the technical indicators, the price has broken above the 50-day SMA on the daily chart. Meanwhile, the 100-day SMA is still acting as resistance to further price growth, precisely at the point where the current resistance is holding.
On the other hand, the relative strength index is at 63, indicating that there is some leeway for the price to increase before becoming overbought, which supports the possibility of a bullish run.
At the moment, the current resistance around $0.86 to $0.91 appears to be the main obstacle to the price rally. A breakout above it should trigger a 20% spike to the next major resistance level.
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