$0.69
24h
-12.67%
23 Aug, 09:07
SUI trend decay and range consolidation analysis
Neutral-13.13%
AI Summary
Technical analysis of SUI showing trend decay from breakout acceptance to rejection, likely entering range consolidation with no confirmed reversal at 0.9000 level yet.
Continuation: We divide the current $SUI market behavior into two parts.
The first part is the market correction following the breakout above 3 mentioned in the previous post.
We stated that since it did not retest the resistance level of breakout 3, it was a strong breakout.
Therefore, we can see it forming a sideways correction here, followed by another breakout in the form of a large bullish candle.
Subsequently, a buying climax occurred; a high-volume large bullish candle appearing at the end of an uptrend is generally regarded as the end of the trend.
The second part is a downtrend. The market found minor support at the LTF breakout 4 resistance level, but we now observe that it has fallen over the weekend. This means the market has shifted from accepting post-breakout prices to rejecting them.
From acceptance to rejection, this is a sign of trend decay and a characteristic of entering range consolidation.
We still cannot consider that a trend reversal has occurred. When a trend becomes unsustainable, it is highly probable that it will first enter range consolidation. Only by observing whether subsequent price action leads to a counter-trend push can we confirm a market trend reversal; currently, there is insufficient evidence at 0.9000.
(Unless a red downward push occurs as expected)