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SUI’s Rounding Bottom Signals Potential Breakout: Is a Rally Looming?

Published 29/01/2024, 13:12
SUI’s Rounding Bottom Signals Potential Breakout: Is a Rally Looming?

Coin Edition -

  • SUI’s recent price correction to $1.31 found strong support, indicating potential for further gains.
  • The rounding bottom pattern in the SUI/USD pair suggests a possible breakout towards $2.00.
  • Strong RSI, MACD, and CMF indicators signal robust bullish momentum for the SUI market.

The Sui (SUI) cryptocurrency has been in an uptrend, capturing the attention of investors and traders alike. Despite stiff resistance at the $1.50 mark, the digital asset exhibits bullish, solid momentum, hinting at potential future gains. In the last 24 hours, however, the SUI has experienced a slight price correction, causing some uncertainty among investors.

During the correction, the SUI price dipped to an intra-day low of $1.31, where support was found, leading to a bounce back toward the $1.40 level. This price action suggests that there is still strong buying interest in SUI, and investors may see this correction as a buying opportunity to enter or add to their positions. At press time, SUI was trading at $1.43, a 3.19% surge from the intra-day low.

SUI/USD 24-hour price chart (source: CoinStats)

However, market analysis reveals that the SUI/USD trading pair has been forming a rounding bottom pattern, a bullish indicator. This pattern, characterized by a gradual decline followed by a steady rise, suggests that Sui could be on the brink of a significant breakout. A successful breach and closure above the $1.50 threshold could propel the cryptocurrency towards the $2.00 mark, with the ultimate pattern target set at $2.50.

SUI/USD Technical Analysis

The Relative Strength Index (RSI) rating of 63.79 on the SUI price chart indicates that bull momentum is now strong. This tendency shows that the price will likely continue to rise soon. However, if the RSI rating increases above 70, the price may be overbought and due for a drop.

Furthermore, the Moving Average Convergence Divergence (MACD) shift above its signal line with a rating of 0.123341 indicates that bullish momentum is increasing. This MACD shift signals that purchasing pressure is building and may push the price higher soon. However, if the MACD shift reverses and moves below its signal line, it may indicate a loss of bullish momentum and a potential trend reversal.

CMF/USD 24-hour price chart (source: TradingView)

The Chaikin Money Flow (CMF) motion in the positive region, with a reading of 0.15, reinforces the bullish momentum and suggests intense purchasing pressure in the market. This CMF reading indicates a solid flow of money entering the market, strengthening the case for a bull rally.

The post SUI’s Rounding Bottom Signals Potential Breakout: Is a Rally Looming? appeared first on Coin Edition.

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