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October 31, 2023

Sushi Price Surges: Potential Breakout and Caution for Traders

Ethan Lim
Written byEthan LimWriter
Researched byNikos PapadopoulosResearcher

Introduction

Sushi, the token native to the decentralized exchange SushiSwap, has experienced a significant surge in price, increasing by almost 20% in just 24 hours. This bullish trend has been sustained over the past month, with a 25% gain in 30 days, 39% gain in two weeks, and a 26.5% gain in the last week.

Sushi Price Surges: Potential Breakout and Caution for Traders

Increasing Trading Volume

The trading volume supporting this uptrend has also been on the rise, with $83 million coming in over the past 24 hours. Sushi currently has a market capitalization of $143 million and is ranked #216 among other cryptocurrencies, including stablecoins.

Price Analysis

Sushi's price has been on a rollercoaster ride, falling 96.8% from its all-time high of $23.38 in March 2021. However, a double-bottom pattern support at $0.5322 has allowed bulls to regain control and determine the next direction. The price of Sushi has surpassed the 50-day Exponential Moving Average (EMA) and the 100-day EMA, indicating a bullish breakout.

Resistance and Potential Breakout

Despite the bullish momentum, resistance at the 200-day EMA and the neckline resistance at $0.7785 are still obstacles to overcome. Traders should focus on pushing above these levels to increase the chances of Sushi climbing above $1.

Caution for Traders

The Relative Strength Index (RSI) currently stands at 84.29, indicating that Sushi is highly overbought. This suggests a potential correction may be on the horizon. Traders should remain cautious and watch for the RSI to retreat into the neutral zone as confirmation of a pullback.

Double-Bottom Pattern Breakout

Sushi is still poised for a double-bottom pattern breakout at the neckline resistance. If this breakout occurs, it is expected that Sushi's price will surge by approximately 32% to $1.02.

Possible Price Manipulation

There have been concerns raised about possible price manipulation of Sushi. Lookonchain, a blockchain data monitoring platform, has highlighted a significant increase in Sushi's price and warned of potential manipulation. Traders should be aware of this and exercise caution when making investment decisions.

Conclusion

Despite the potential for price manipulation, Sushi's recent surge in price is likely to attract investors looking to ride the uptrend. Traders who have not yet entered the market may want to wait for Sushi to break above the neckline resistance at $0.77 to validate the continuation of the uptrend and avoid possible dips.

About the author
Ethan Lim
Ethan Lim
About

Ethan Lim, a native of the Lion City, is Singapore’s rising star in the domain of online casino guide localization. He masterfully blends his intimate knowledge of local culture with international gaming standards to produce content that resonates deeply with Singaporeans.

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