SUI forms another bullish descending wedge - will the breakout push it to a new historical high?
After an impressive rebound at the end of 2024, major altcoins have been hit hard, and the first-layer token Sui (SUI) is no exception.
In the past 60 days, SUI's value has shrunk by 50% amid increasing selling pressure. However, the broader cryptocurrency market now shows signs of recovery, with Ethereum (ETH) posting a weekly gain of 6%, providing some breathing room for altcoins.
Nevertheless, SUI has not yet regained its bullish momentum. However, renowned cryptocurrency chart analyst Jonathan's recent analysis suggests that an upward trend may emerge in the coming weeks.
SUI forms another bullish descending wedge
According to Jonathan's analysis, SUI has now formed the third descending wedge pattern on the 3-day chart, which is a typical bullish reversal signal. Historically, this pattern has led to significant breakouts in SUI's price action. The previous two descending wedges resulted in explosive upward movements, and this time may be no different.
Currently, SUI is consolidating around $2.28, with the price adhering to the descending trend line of the wedge. If this pattern plays out like before, a breakout above the descending resistance level could trigger a significant rebound, closely approaching key resistance levels of $3.95 and $5.15. A successful breakout above these levels could lay the foundation for a long-term breakout above the historical high of $8.00.
Additionally, the RSI indicator shows a rebound from an oversold state, suggesting a potential change in momentum. If buying pressure increases, the price could soon break through the current structure and enter a new bullish phase.
The descending wedge pattern of SUI indicates that bullish momentum is strengthening, but the price may still consolidate before making a decisive breakout attempt. A successful breakout could propel SUI to new highs, while failing to hold key levels could lead to continued sideways consolidation or a retest of lower support levels. With improving market sentiment and signs of recovery in altcoins, the next few weeks will be crucial to determine whether SUI can maintain its bullish reversal.
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