Solana (SOL) and Sui (SUI) Find Strong Support: Are These Prime Buy Zones?

While it might still be too early to tell, Bitcoin (BTC) could be getting ready for a bounce after finding support at the bottom of its bull flag. Strong altcoins $SOL and $SUI are excellent candidates for their own bounces. Are they in prime buy zones?

$SOL hits horizontal support together with 0.5 Fibonacci level

Source: TradingView

The 4-hour chart for $SOL does look very good. The price is currently resting on the strong horizontal support at $168, while a small wick down to test the 0.5 Fibonacci level has successfully taken place. Looking at the Fibonacci extension levels it can be seen just how accurately the price is respecting them.

At the bottom of the chart, the Stochastic RSI has its indicators at the bottom, ready to rise and bring upside momentum into the price. At the same time, the Relative Strength Index (RSI) reveals that the indicator has just dipped into oversold territory. If one looks left on the chart, the last big rally out of oversold territory can be observed. Is another one of these inbound?

Positive price action badly needed for $SOL going into this weekend

Source: TradingView

The weekly time frame does hold some concerns for the $SOL price going forward. In the price action, the current weekly candle has dipped below the ascending trendline (although it is still holding support), and it is enveloping the previous candle. In the Stochastic RSI at the bottom of the chart it can be seen that the indicators are posturing to cross back down.

What will be needed in order to cancel out these negatives is some good, positive price action going into the weekend. With all the short-term Stochastic RSI indicators at the bottom and ready to rise, this could still be a decent prospect.

$SUI ripe for a bounce

Source: TradingView

Like $SOL, the $SUI price is currently resting on top of strong horizontal support. With the shorter term Stochastic RSI indicators all bottomed, it would appear that $SUI could be ripe for a bounce. One concern on this time frame is that the price has fallen through the ascending trendline. That said, if the expected bounce does arrive, this should be surmounted without too much problem. The resistances at $3.75 and $4 are likely to cause a lot more difficulty. Be aware that there could also be a quick candle wick to $3.40 if the market does come back down again.

$SUI bulls have much to do 

Source: TradingView

Again, much like the case for $SOL, the Stochastic RSI indicators on the weekly time frame are threatening to cross down. Furthermore, the current weekly candle is also very much enveloping the previous one. Both of these bearish factors will need to be cancelled out over the next couple of days or so as we enter the weekend. 

Therefore, it might be said that a really strong bounce is required. If such a bounce does occur, and this weekly candle can close above $4, the next week of price action could be very favourable. However, if this doesn’t come to pass, nerves might continue to shred. Let us see what the end of the week brings.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.