SUI recently broke out of a bullish pennant formation. This is a technical chart pattern that often appears during strong uptrends and usually signals the continuation of upward movement.

This is a technical chart pattern that often appears during strong uptrends and usually signals the continuation of upward movement. When a coin breaks out of this pattern with good volume, it tends to rise further in the short term.

Sui (SUI) has encountered a key resistance level at $4, which may influence the cryptocurrency's ability to sustain gains in the short term.

Despite pulling back slightly from highs of $4.50, Sui managed to close above the $4 mark on Monday, extending gains from the past week. The cryptocurrency had been trading in a bullish pennant formation on the 8-hour chart, which is a technical chart pattern that often appears during strong uptrends and usually signals the continuation of upward movement.

When a coin breaks out of this pattern with good volume, it tends to rise further in the short term.

However, several technical indicators suggest that sellers may step in if there isn't enough strength to push higher. Resistance levels now sit at $4.22, $4.31, and $4.50, prices at which this may occur.

The Relative Strength Index (RSI) is currently at 74.79, which suggests the asset is moving into overbought territory. This means the price has risen too fast and may face short-term selling pressure. However, during strong rallies, prices can stay in the overbought zone for an extended period.

The Moving Average Convergence Divergence (MACD) shows a bullish crossover, where the MACD line has crossed above the signal line. This is usually seen as a positive sign indicating rising momentum.

The Chaikin Money Flow (CMF), which measures buying and selling pressure, has increased to 0.25. A value above zero means buyers are in control, and rising values suggest growing interest from investors.