A corrective impulse is taking charge of altcoins on Tuesday. How far down could this reversal take Solana (SOL) and Sui (SUI)? How deep could these corrections go?
Before thinking of any possible buy zones for altcoins in the next week or two, it is important to consider the possibility that the alts may be on the edge of a potential bigger drop. Both $SOL and $SUI are analysed as to whether they could be part of a larger correction.
The 4-hour time frame for $SOL shows that the price has been rejected from the top of the channel and is fast approaching the bottom. This appears to be a bear flag, and so it would be expected for the price to fall out of the bottom and to head lower. $157 is a measured move for a potential drop, so the bulls will be hoping that this does not play out.
Could this be the start of a major corrective move for $SOL? The upper trendline is likely to be retested again at the very least if the aforementioned bear flag plays out. This would take the price down to the major $200 horizontal support line.
If this trendline and this horizontal support fail to hold the price, a fall to $188, and then $176, where the lower trendline provides support, are possible targets.
It must be noted that the major support level at $156 is not beyond the realms of possibility, given that this matches up with the 0.618 Fibonacci level. This would be below the bull market trendline, but a candle wick down to this level is a potential scenario.
After failing to break out of a descending trendline, the fakeouts in the chart above bear testament to the bears keeping control of the $SUI price. The price has already been down to the major $3 horizontal support level, and if the current $3.21 support level fails, the price is likely to end up back there again.
The Stochastic RSI indicators at the bottom of the chart also suggest that a further drop could be coming soon.
The weekly chart for the $SUI price illustrates how critical this next week or two can be. While a general downward trend is still in evidence, the price has reached strong support provided by horizontal levels and the bull market trendline. A confirmed breakdown below the trendline and the $3 support level would potentially lead to a drop to $2.35. Strong support here, or at $1.92, could stop the rot.
At the bottom of the chart, the Stochastic RSI indicators are approaching the bottom, which could lead to a cross back up in the next two or three weeks.
The RSI signals caution. It can be observed that the indicator line is just starting to dip its head below the ascending trendline. If this is the case at the end of this week, look for the price action to also fall below the bull market trendline.
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