Sui (SUI) price surged over 25% and cleared the $2.60 resistance. It is now testing the $3.00 resistance and might see a downside correction.
SUI Price Outpaces Many Altcoins
In the past few days, SUI saw a steady increase from the $2.00 support, beating Bitcoin, Ethereum, and a few other cryptocurrencies. The bulls were able to push the price above the $2.20 and $2.50 resistance levels.
During the increase, the price surpassed a major bearish trend line with resistance at $2.20 on the daily chart. There was a clear move above the 23.6% Fib retracement level of the downward move from the $5.35 swing high to the $1.719 low. More importantly, the price settled above the $2.60 resistance and the 50-day simple moving average (blue).
SUI is up over 25% in a few sessions and now approaches a major hurdle. The price seems to be facing a major roadblock near the $3.00 level. Besides, there is a connecting bearish trend line forming with resistance at $3.00 on the same chart.
The price is already showing a few signs of rejection near the $3.00 level. Therefore, there are chances of a short-term downside correction. Immediate support is near the $2.80 level.
The first major support is near the $2.60 zone (a multi-touch region). The main support is now forming near the 50-day simple moving average (blue) at $2.30. A daily close below the $2.30 support could trigger a major drop. In the stated case, the price could dive and test the $2.00 support. Any more losses might send the price toward the $1.850 support.
Another Increase?
If the bulls remain active above the $2.60 support, SUI could see another increase. Immediate resistance sits near the $3.00 level and the trend line. A close above the $3.00 level could set the pace for more upsides.
The next major resistance could be $3.50 and the 50% Fib retracement level of the downward move from the $5.35 swing high to the $1.719 low. A clear move above the $3.50 level could accelerate gains. In the stated case, the price could rally and test the $4.00 level. Any more gains might send the price toward the $4.50 resistance zone.
Overall, SUI price gained heavily in the past few sessions and is now struggling near the $3.00 resistance. It could see a short-term downside correction before the bulls attempt another increase.