The SUI coin price has been following a trend of sustained consolidation within the confines of two converging trendlines, as observed on the 4-hour time chart. Market traders have taken note of the strong influence of the trendlines, with the price action bouncing off both the upper and lower trendlines in recent trading sessions. A breakout from either of these lines will potentially trigger a more stable price movement and bring the SUI coin out of its current consolidation phase.
As the SUI price draws closer to the apex of the triangle formed by the converging trendlines, the likelihood of a decisive breakout increases. However, the area between the trendlines has now become narrow enough that it can be considered a no-trading zone, discouraging new traders from entering the market until a breakout occurs.
Should a bullish breakout transpire above the upper trendline, with a 4-hour candle close, buyers could capitalize on the opportunity to reclaim higher levels on the chart. A post-breakout rally could see the SUI coin price surge to $1.14, followed by $1.24, and $1.37. On the other hand, a breakdown below the lower trendline may extend the current downtrend and push the SUI price towards the critical psychological support level of $1, with the potential to further fall to $0.925. A breakdown below this support trendline would signal heavy selling pressure in the market, increasing the likelihood of a more substantial drop below the $1 mark.
The Relative Strength Index (RSI) shows a noticeable uptick, potentially indicative of underlying growth in the SUI coin and an increased probability of a breakout to the upside. Market participants should remain vigilant and react accordingly as the situation unfolds. Adding to this analysis, the 20 and 50 Exponential Moving Averages (EMA) seem to serve as dynamic resistance, adding further obstacles for sellers looking to drive the price to even lower levels.
While the fate of the SUI coin price hinges on the market’s continued indecisiveness, the prospects are enticing to those who appreciate the potential rewards they may reap upon a breakout in either direction. Nonetheless, as with all market analysis, it is crucial to conduct thorough research before making any investment decisions, recognising the inherent risks associated with the unpredictable nature of cryptocurrencies.
Source: Coingape
