ALGO, AVAX, and SUI are showing strong technical setups and could see potential gains as they approach key resistance levels. Here’s what to watch for in the coming week.
Summary
- ALGO: Reclaimed $0.26 neckline, a close above $0.27 could target $0.34 or higher.
- AVAX: Tested $27 neckline twice, support at $20, aiming for a potential breakout.
- SUI: MAs are stacking in bullish order, priming price to test $4.30–$4.40 resistance.
ALGO
Algorand (ALGO) price has recently broken out of a massive double bottom formation, with the neckline around $0.26 and accumulation base at $0.15-$0.16. Following the breakout, ALGO price rallied to a peak of $0.34, achieving nearly 90% of the measured move target.
As expected after such a sharp move, ALGO price has pulled back to a low of $0.22 before rebounding to the neckline region once again. While the dip undercut the $0.26 neckline, the quick recovery suggests that buyers may still be defending this level as a key pivot. Bulls have just reclaimed it with ALGO trading at $0.27 as of press time. If there’s a clean close above $0.27 today, followed by continued momentum, it could pave the way for a retest of the $0.34 high or potential formation of a higher high by the end of next week or sooner.
AVAX
Unlike ALGO, which actually did break out of a double bottom and then topped out, Avalanche (AVAX) had formed a double bottom but failed to break above its $27 neckline. After testing it twice and forming a mini double top, it pulled back to around $21, where the 50 SMA acted as support and contained the decline.
AVAX price is currently rebounding while testing the 20 EMA, with a bullish crossover between the two MAs still intact. It appears AVAX price is tracking to retest the $27 neckline once again. Breaching this level with strong volume and follow-through could signal a reversal, potentially within a week, as the AVAX price is only about 17% from that level.
SUI
Sui (SUI) price has broken above the 20-day EMA and is currently trading at $3.83, with the bullish crossover between the EMA 20 and SMA 50 still intact. Additionally, the price recently crossed the 7-day EMA on yesterday’s 8%+ candle, and while the 7 EMA is currently below the 20 EMA, it looks poised to cross above it soon, which would stack these moving averages in a bullish order.
This soon-to-be-realized bullish MA stacking significantly reduces the risk of the bearish double top formation flagged earlier, shifting sentiment firmly in favor of the bulls. As a result, the likelihood of testing the $4.30–$4.40 resistance zone has increased, with the potential for a higher high next week.
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