Following a period of price fluctuations and retracements, SUI appears to be on the verge of a significant technical rebound. Recent price activity has revealed a classic Inverse Head and Shoulders pattern, which is commonly recognized as a strong bullish reversal indicator. Although a breakout has not yet occurred, the underlying structure indicates increasing strength.
In a recent analysis posted on X, the analyst Cleanwater pointed out the emergence of an Inverse Head and Shoulders pattern on SUI's chart. The pattern began with a decline from $3.74 on May 29 to $3.00 by May 31, marking the initial correction. Following this, a robust bounce lifted the price to $3.39 on June 3, establishing the first neckline.
The price then experienced another decline, reaching $2.84 on June 5, which formed a critical support zone and represented the "head" of the pattern. However, a quick recovery saw SUI rise to $3.55 on June 10, aligning with the neckline and reinforcing the bullish setup. On June 13, SUI dipped again to $2.91, which Cleanwater identifies as the final confirmation needed to validate the Inverse Head and Shoulders formation. Currently, with the price trading around $3.04, the setup suggests considerable upside potential.
According to Cleanwater, the Inverse Head and Shoulders pattern evolved through a series of movements: an initial dip, a modest recovery, followed by a deeper drop, and then a push towards higher resistance capped by a final, shallower dip that remained near the first level.
The analyst also noted the formation of a channel on both the 4-hour and daily charts, suggesting that a breakout may be imminent. While pinpointing the exact timing of a breakout is challenging, the consistent price behavior within well-defined support and resistance levels indicates strengthening momentum. Such sideways consolidation often precedes a significant movement in either direction.
From his perspective, Cleanwater maintains a bullish outlook, believing there is substantial upside potential if market momentum shifts in favor of buyers. The repeated testing of resistance and support reinforces this bullish sentiment, indicating a solid underlying structure. Although he cannot predict the precise moment of a breakout, he feels that the current conditions are favorable for those who position themselves early. Nonetheless, Cleanwater advises caution regarding the global economic landscape, as recent news events have begun to impact market sentiment. He views the current price range as a strong accumulation zone but acknowledges that additional time is required for the overall situation to fully unfold.
