SUI is showing signs of stability after finding support in the key technical confluence zone, giving bulls hope for a potential rebound. However, despite the powerful support structure, broader market signals continue to point to persistent downside risks, with growing concerns that the current trend may continue to favor a deeper correction.
Holding tight in the key breakout retest zone
In the face of waning market activity, crypto strategy specialist Scient highlighted a critical moment for SUI. Following a steady pullback, the asset successfully tested and held support at the highest value area (VAH) level in its previous intraday trading range. This level is crucial because it marks the initial breakout point, signaling that the bulls have successfully defended their territory.
The 12-hour breakout block acts as a catalyst for the initial breakout, which now serves as a solid defensive barrier. Adding to this confirmation is a dense cluster of exponential moving averages (EMAs) that converge on the same area. This combination creates a powerful convergence of indicators that strengthens the case for price stability.
This lineup of VAH, Breaker Block and EMA Cluster creates three distinct layers of support at one critical price point. As long as these supports hold, the market structure will remain resilient, dampening bearish momentum and encouraging consolidation.
Given this defensive stance, the path of least resistance now points upwards, targeting the 0.618-0.786 Fibonacci extension zone. If the accumulation phase continues, this goal will remain the logical goal of economic recovery.
SUI continues to struggle to confirm a significant bottom
According to According to the MCO Global report, SUI has not yet confirmed a significant market low, which raises concerns about the broader structural health of the assets. The prevailing technical analysis suggests that the current recovery phase may represent a completed wave 4. If this wave structure continues, the asset appears poised to initiate a fifth wave of declines, with technical targets projected at 65 to 49 cents.
On the technical front, immediate overhead resistance is concentrated in the $1.12 to $1.31 corridor. A decisive daily close above $1.31 is a necessary step to improve the outlook and support an extended Wave 4 recovery, with upside targets potentially ranging from $1.44 to $2.08. If this obstacle is not cleared, the asset will be exposed with immediate declines of $0.97, $0.88 and $0.81.
Ultimately, current price action is increasingly reflecting a classic five-wave decline from May’s highs. Until the market shows a shift towards impulse, high-conviction buying, the technical evidence will continue to favor lower prices rather than an immediate reversal of structure.
