Technical Breakdown of SUI's Bullish Rally
Sui (SUI) has demonstrated a strong technical recovery, completing a triangle correction on the 1-hour chart while maintaining key Fibonacci levels. The current uptrend suggests potential for further gains, with wave (v) targeting the $4.20–$4.50 range.
Elliott Wave Structure Analysis
- Wave (i)-(v) Sequence: Clear five-wave impulse pattern visible on 4-hour charts since April's $1.70 low
- Correction Depth: Wave (iv) held firmly above the critical 0.5 Fibonacci retracement at $2.93
- Momentum Signals: RSI shows hidden bullish divergence, confirming strengthening buying pressure
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Key Price Levels and Trading Strategy
Resistance Zones
- Immediate: $3.50 (0.382 Fib level)
- Primary Target: $4.20 (0.236 Fib extension)
- Extended Reach: $4.50 (wave v projection)
Support Foundations
- $3.00 (wave iv base)
- $2.93 (50% retracement)
- $2.36 (0.618 safety net)
Optimal Entry Points
- Consolidation above $3.40–$3.50 provides ideal positioning
- Watch for 5-wave microstructures confirming trend continuation
- Volume spikes during breakouts signal institutional participation
Market Psychology and Volume Dynamics
The recent breakout from a descending wedge pattern occurred with:
- Notable volume increase (validating buyer interest)
- RSI exiting oversold territory
- Bullish divergence at wave (e) trough
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Frequently Asked Questions
What makes SUI's current rally different from previous moves?
The textbook Elliott Wave structure combined with Fibonacci precision suggests this is part of a larger impulse wave rather than isolated volatility.
How reliable are the $4.20–$4.50 price targets?
These projections derive from multiple confluence factors: Fibonacci extensions, previous resistance levels, and wave theory measurements - making them statistically significant.
What would invalidate the bullish scenario?
Failure to sustain above $3.50 or a breakdown below $2.93 would suggest weakness, potentially indicating a deeper correction is underway.
Why is the 1-hour triangle pattern significant?
Triangle corrections typically represent continuation patterns in trends. The recent breakout confirms completion of wave (iv) and start of wave (v).
How should traders manage risk in this setup?
Implement proper position sizing, set stop-losses below key support ($2.93), and scale out positions as price approaches resistance levels.
Disclaimer: This content represents market analysis only, not financial advice. Cryptocurrency trading involves substantial risk. Always conduct independent research before making investment decisions.