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Sui (SUI) Price Breaks Short-Term Pattern, Is a Sell-Off Happening?

The price of Sui (SUI) has been rejected by the resistance zone at the all-time high and has broken below a short-term pattern. It is expected to undergo a correction in the near future.

Weekly Outlook

The Sui (SUI) price broke above the crucial horizontal resistance zone at $1.25 in the week from January 22nd to 28th, 2024, spiked to an all-time high at $2 last week.

However, the weekly candles after the breakout all have long upper wicks, and the volume gradually decreased. These are signs of weakness.

In fact, the SUI price was rejected by the resistance zone at the all-time high of $2 last week (red arrow).

The weekly RSI is cutting below 70 and sloping down, another sign of weakness.

If SUI continues to decline, a crucial support zone to watch is $1.25, which is 24.39% lower than the current price.

SUI/USDT weekly chart . Source: TradingView

Break the Short-Term Pattern

The daily chart indicates more bearish signals than the weekly timeframe.

In the past two days, the SUI price has broken below the short-term rising wedge pattern and the horizontal support zone at $1.7. This means that the bears have regained control in the short term.

The daily RSI has broken below the ascending support trendline and is sloping down, supporting further declines.

Therefore, the SUI price may drop to the support zone at $1.40 in the coming days.

SUI/USDT daily chart . Source: TradingView

Conclusion

The most likely scenario suggests that the SUI price will undergo a correction in the near future. The nearest target is $1.40, and potentially lower towards $1.25.

The bearish outlook will be invalidated if SUI breaks above the resistance zone at $2.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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