Sushi, the native token of the decentralized exchange SushiSwap, has experienced a significant surge in value, increasing by almost 20% in just 24 hours to reach $0.75. This bullish trend has been sustained over the past month, with a 25% gain in 30 days, a 39% gain in two weeks, and a 26.5% gain in the last week. The trading volume supporting this upward movement has also continued to rise, with $83 million being traded in just 24 hours. With a market capitalization of $143 million, Sushi currently ranks at #216 among other cryptocurrencies.
Sushi had previously suffered from the effects of the crypto winter, falling by 96.8% from its all-time high of $23.38 in March 2021. However, a double-bottom pattern support at $0.5322 provided a signal for bulls to take control and determine the next direction. The price of Sushi crossed above the first major hurdle at the 50-day Exponential Moving Average (EMA) and then surpassed the resistance at the 100-day EMA. This led to an engulfing candle and brought Sushi close to breaking out of the double-bottom pattern. The remaining obstacle is resistance at the 200-day EMA and the neckline resistance at $0.7785. To increase the chances of surpassing $1, traders need to focus on pushing above these levels.
While Sushi’s price is currently overbought according to the Relative Strength Index (RSI), cautioning traders about potential corrections, it is still positioned for a breakout from the double-bottom pattern at the neckline resistance. Such a breakout would likely be accompanied by increased trading volume and could push Sushi’s price up by around 32% to $1.02.
However, there are concerns about possible price manipulation affecting Sushi’s value. Lookonchain, a blockchain data monitoring platform, highlighted the significant increase in Sushi’s price and warned of potential manipulation. The platform observed a new wallet buying Sushi on the decentralized exchange and depositing stablecoin USDC to perpetual exchanges using multiple addresses. Whether manipulation is occurring or not, Sushi’s double-digit price increase is likely to attract investors interested in riding the upward trend. Traders who have not yet entered long positions may want to wait for confirmation of the uptrend’s continuation by observing a break above the neckline resistance at $0.77.
In conclusion, Sushi has experienced a substantial surge in value, with its price increasing by almost 20% in just 24 hours. This bullish trend has been sustained over the past month, and the trading volume supporting it continues to rise. While there are concerns about possible price manipulation, this increase is likely to attract investors looking to capitalize on the uptrend. Traders should remain cautious and wait for confirmation of the uptrend’s continuation before entering long positions.
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