SUI sharply rose from the 20-day exponential moving average (2.92 dollars) on Wednesday and broke above the 50-day simple moving average (3.08 dollars) on Thursday.
The 20-day EMA is trying to rise, and the relative strength index (RSI) has jumped into positive territory, indicating that the bulls are back in the game. If buyers maintain the price above the 50-day SMA, the SUI/USDT pair could rise to 3.55 dollars.
Contrary to this assumption, if the price drops and breaks below the 20-day EMA, it signals that the bears continue to sell on the rallies. The pair could then decline to 2.64 dollars and later to 2.29 dollars.
The pair completed a bullish inverted head and shoulders pattern with a close above the 3.08 dollar level. Although the ascending moving averages indicate an advantage for buyers, the overbought level in the RSI suggests that a pullback may be around the corner. The neckline is the crucial support to watch on the downside. If the price bounces off the neckline, the pair could rebound to 3.50 dollars and subsequently to the pattern target of 3.89 dollars.
This optimistic view will be short-circuited if the price drops and sinks below the moving averages. That could lead the pair to 2.80 dollars and then to 2.60 dollars.