The first week of April recorded a notable upswing in the cryptocurrency market as panic selling surrounding the U.S. trade agreement subsided. The renewed recovery pushed the Bitcoin price above $80,000 and most major assets like SUI for a fresh breakout.
The SUI price currently stands at a pivot level as it teases a break past multi-month resistance along key EMA breakout
SUI Faces Critical Test Near Wedge Support as EMA Support Perishes
Since last week, the SUI price has bounced from $1.71 to $2.25, registering a 40% growth. An analysis of the daily chart shows this upswing teases a bullish breakout from the fast-moving 20 EMA.
In the last two months, the coin price showed several failed attempts to breach this dynamic resistance, which resulted in increased selling pressure. With today’s 5% loss, the SUI coin shows a reversal from the downsloping resistance to currently trade at $2.21, while the asset’s marketcap plunged to $7.2 Billion, according to CoinGecko data.
If the global trade tension continues to escalate, the sellers could breach the EMA slope and drive another 22% fall to test the wedge pattern support at $1.72. The coin price bounced several times from the two trendlines, indicating the strong influence of this pattern on price movement.
Theoretically, the chart pattern provides a temporary consolidation within two converging trendlines for buyers to recuperate bullish momentum.
Thus, the SUI price would likely defend this support to launch a fresh recovery that targets a breakout from a wedge pattern near $2.75. A bullish breakout from this resistance barrier is key for buyers to end the current correction trend.
Relative Strength Index: Defying the downward trend in price, the daily momentum indicator RSI shows a fresh higher low formation in the daily chart, projecting the increasing bullish momentum at bottom support.
Exponential Moving Average: The coin price trading below the crucial EMAs (50, 100, and 200) indicates the broader market trend is bearish.
Also Read: Solana Bounces from 3-Month Correction—Is a $180 Target in Sight?
