After a sharp 75% rally, SUI is showing signs of exhaustion as it approaches a critical resistance area. While the overall trend remains bullish, technical indicators suggest a potential pause or pullback may occur in the short term before the next phase of upward momentum.

The Rally and Key Resistance Levels

The recent impulsive rally of SUI has highlighted strong bullish momentum. However, the price is now encountering resistance at a confluence of factors, including the 0.618 Fibonacci retracement level and the range high. This resistance zone has been a significant structural ceiling in the past, and the inability to break above it cleanly suggests the formation of a potential swing-failure pattern (SFP). This pattern strengthens the case for a near-term correction as part of a larger bullish trend.

Key Technical Points to Monitor

  • Major Resistance: Confluence of the 0.618 Fibonacci retracement level and the range high.
  • Support Levels to Watch: $2.70 to $2.40, which includes the range mid and the VWAP (Volume Weighted Average Price) support region.
  • Trend Structure: Potential wave 3 expansion in play following a corrective move.

Short-Term Pullback: A Healthy Pause?

A potential pullback would be technically healthy, allowing the price to form a higher low within the broader bullish structure. Critical areas to watch during this correction include:

  • The VWAP support region
  • The range mid around $2.70
  • The 0.618 Fibonacci retracement level, which may now act as support

These zones could provide a launchpad for the next leg higher, potentially initiating a wave 3 expansion if the bullish structure continues to hold.

Market Dynamics: Buyers vs. Sellers

The market appears to be entering a phase of balance, where buyers and sellers are competing around key levels. This indecision often precedes a volatility breakout, particularly after a strong impulsive move. Traders should monitor volume spikes and candlestick formations near support levels for early signals of the next directional move.

It’s worth noting that while the initial rally was strong, trading volume has started to decline. This reduction in volume supports the case for either a consolidation phase or a short-term correction. Currently, the price is trading within the defined range of $2.70 to $2.40 and may remain in this zone until one of these levels is decisively breached with strong volume.

What to Expect in the Near Term

For now, traders are advised to remain patient and observe the structure of any pullback. The way the price reacts to key support levels will provide valuable clues about the next move:

  • A break and hold above the swing high would invalidate the pullback scenario and signal further upside.
  • A bounce from support zones would confirm the continuation of the bullish trend.

As the market navigates this critical resistance and support interplay, staying informed and monitoring price action closely will be key to capitalizing on potential opportunities.

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