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- This year alone, the SUSHI token price has skyrocketed to $23, representing a 30-fold gain from a November 2020 low
- After establishing an ATH of $23.50 on 13th March, the token diminished by almost 40% showing signs of bearish divergence
SushiSwap price action appears to be optimistic on the daily time frame. After a 40% decline from its ATH, the chart price action had emerged the rising wedge chart pattern. This pattern was confirmed after seeing a massive green candle prop up the upward momentum. Within the same day, the token saw a significant surge in the volume. Bouncing on the resistance level of $13.88 could mean that the token is getting fueled to break the latest high. SushiSwap price is hovering in an uptrend and favours the support trend line. One concerning factor for intraday traders would be that Sushi has formed a Doji candlestick at the resistance level of $18.30, hinting at the possibility of a minor pullback.
SIX HOUR CHART DEPICTING A SHORT TERM BEARISH SCENARIO
On a brief emphasis on the 6-hour chart, we can notice that the bulls were unsuccessful in touching the resistance level of $18.30. SushiSwap price is experiencing a tight consolidation phase between the range of $17.35-$17.95. If the price falls beyond $17.35, it will disrupt the uptrend and break the support trend line.
SushiSwap price is levitating on the 20 EMA, which might test as resistance again, indicating a bearish trend. If this happens, the 50 EMA at $17.38 will swoop right in to provide support to this token. This will trigger a sell-off between the investors, causing the price to fall even further. In that case, the 200 EMA at $15.44 will act as a support level.
The RSI has entered the overbought territory at 75, suggesting that the price will retrace further down.
On the 2 hour chart, the MACD line has already crossed from above the signal line, which implies slight bearishness.
CONCLUSION
Overall, the long term prediction of SUSHI is bullish, and a rally over this period could see this token regain the $23 mark. However, the oscillators need to stabilize before investors consider going long on this asset. If SUSHI bounces on $18.11 resistance level and tests as support, investors could see a parabolic move. The fundamentals of SUSHI are also pretty strong, and if investors manage to HODL this particular asset, they are in for huge gains. Although this token’s market cap achieved $2 billion as it surpassed $16, many enthusiasts still believe it’s undervalued.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
