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.
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
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.
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.
Manage all your crypto, NFT and DeFi from one place
