Analyst Warns SUI Price Might Face a Correction – Here’s Why

Analyst Warns of Potential Correction in SUI Price

Ali Charts, a renowned analyst, has provided insights into the price action of SUI, using the TD Sequential indicator. He highlights a potential sell signal on the weekly chart, cautioning traders to exercise prudence. However, technical indicators suggest a potential correction may be on the horizon.

TD Sequential Indicator

The TD Sequential indicator is widely used to predict the exhaustion of trends. On the SUI weekly chart, a red "9" has appeared, signaling potential overbought conditions and a possible reversal.

Historical data suggests that similar instances of this signal have accurately forecast market corrections for SUI. Ali emphasizes the reliability of the TD Sequential in predicting SUI's trends, advising traders to be cautious when such signals arise.

Price Action and Support Zones

Over the past few weeks, SUI's price has risen significantly, climbing from less than $1 to nearly $2.50. Recent candlestick patterns indicate weakness, with a red weekly candle suggesting a potential decline. This aligns with the TD Sequential sell signal, which may lead to further price drops in the coming weeks.

At its current resistance level of $2.50, the rising momentum of SUI appears to be slowing down. A crucial support zone exists between $1.10 and $1.20, where the asset previously consolidated before its bullish rally. If the price reverses, this zone could provide support.

Overbought Conditions

The Relative Strength Index (RSI) for SUI is currently over 70, indicating that the price has entered an overbought territory. This metric reinforces the idea that the recent rally may be losing steam. Historically, overbought conditions often precede pullbacks, warranting caution in the current situation.

Historical Significance

The TD Sequential indicator has proven accurate in signaling reversals for SUI in the past. Earlier this year, a similar red "9" appeared on the chart, followed by a significant correction. Conversely, a green "1" in August marked the beginning of the current rally. Analysts like Ali consider the current signal to be significant based on this historical context.

Conclusion

As SUI continues to trade near its peak, traders should remain vigilant. The TD Sequential sell signal and overbought RSI indicate a potential correction, despite the current positive trend.