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HomeCrypto NewsAnalysisSUI Analysis: Price Reversal Hints at Potential $5 Comeback

SUI Analysis: Price Reversal Hints at Potential $5 Comeback

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Following a recovery wave after Monday’s crypto market bloodbath, SUI is seeing a price reversal that now signals a potential recovery run toward $5.

As the total crypto market cap, excluding Bitcoin and Ethereum, reclaims a $1 trillion valuation, altcoins, including SUI, show signs of a V-shaped recovery. In this recovery, SUI has demonstrated a strong lower price rejection, indicating a return of bullish momentum.

Can this recovery overcome the recently heightened bearish pressure on its daily price trend? Let’s dive in.

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SUI Price Trend 

On the daily chart, SUI’s price trend shows five consecutive bearish candles, marking a price drop of nearly 17%, from $4.65 to $3.87. However, the sixth bearish attempt failed after a low of $3.49.

SUI Price Chart
SUI Price Chart

As the broader market bounced back, SUI’s price closed at $3.94, showing a 1.94% surge. The hammer candle now suggests the formation of a potential morning star pattern.

Currently, SUI is trading at $3.958 and looks ready to overcome the short-term pullback. The lower price rejection has managed to hold above the 100 EMA line, bouncing from the 61.8% Fibonacci level near $3.46.

The intraday recovery halted the decline in the RSI line before it reached the oversold zone. As the daily RSI takes a sideways shift, the recovery aims to delay a bearish crossover between the 20 and 50 EMA lines.

Therefore, the potential Morningstar pattern could prevent a sell signal from technical indicators.

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SUI Price Targets

For the SUI rally to sustain, the Morning Star pattern must hold with a closing price above the 78.6% Fibonacci level at $4.19. If so, a retest of the previously broken trendline near the $5 psychological level is possible for SUI.

On the downside, a continuation of the bearish trend could place further pressure on the 61.8% Fibonacci level at $3.46.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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