Essential aspects:
Bitcoin (BTC) soared to a new record high on Thursday, and the positive mood has influenced certain altcoins. One of these altcoins is Sui (SUI), which surged by 11.3% to $3.41.
Is it possible for SUI to sustain its ascent? Let’s examine the charts to uncover the answer.
SUI price forecast
SUI sharply rebounded from the 20-day exponential moving average ($2.92) on Wednesday and exceeded the 50-day simple moving average ($3.08) on Thursday.
The 20-day EMA is attempting to rise, and the relative strength index (RSI) has moved into positive territory, signaling that the bulls are re-entering the market. If purchasers keep the price above the 50-day SMA, the SUI/USDT pair might ascend to $3.55.
In contrast to this expectation, if the price declines and falls below the 20-day EMA, it indicates that the bears are persisting in selling during rallies. The pair could then drop to $2.64 and subsequently to $2.29.
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The pair formed a bullish inverse head-and-shoulders pattern with a closure above the $3.08 mark. Despite the ascending moving averages indicating an advantage for buyers, the overbought condition on the RSI suggests a potential pullback may occur soon. The neckline serves as a significant support level to monitor on the downside. If the price bounces from the neckline, the pair could increase to $3.50 and then target the pattern goal of $3.89.
This favorable outlook will be invalidated shortly if the price reverses and drops below the moving averages. That may force the pair down to $2.80 and subsequently to $2.60.
This article does not provide investment guidance or suggestions. Every investment and trading decision carries risk, and readers are encouraged to perform their own analysis before making a choice.
