SushiSwap Tokens Changing Hands: Price Recovery Imminent?
During the intraday trading session on June 2, SushiSwap’s Age Consumed metric reached a seven-day peak, indicating a shift in dormant tokens being traded. This activity was followed by a price rally in the altcoin, hinting at a possible price floor being established.
Sushi Dormant Addresses On the Move
On June 2, data from the blockchain revealed that 196,000 dormant SushiSwap tokens were transferred, leading to a surge in the Age Consumed metric for the altcoin. This metric tracks movements of long-held coins, offering valuable insights into the behavior of long-term holders.
- A rise in the metric indicates a significant transfer of tokens that were previously inactive.
- Conversely, a decline suggests that dormant coins remain untouched.
- Historically, a spike in this metric often precedes a change in market trends.
Sushi Price Prediction: Bearish Outlook
Despite SushiSwap’s recent price increase, negative sentiment surrounds the altcoin, with a weighted sentiment of -0.516 confirming the prevailing bearish bias. Technical indicators also align with this bearish outlook:
- SushiSwap’s price is below its 20-day Exponential Moving Average, indicating diminishing buying pressure.
- The Relative Strength Index (RSI) sits at 49.65, below the neutral 50 level, implying a preference for selling over buying.
If selling pressure persists, SushiSwap could see a decline below $1 to reach $0.88. However, a reversal in sentiment leading to increased buying pressure could drive the price up to $1.22.
Hot Take: Proceed with Caution
Considering the recent movements in dormant SushiSwap tokens and the potential price recovery, it may be tempting to enter the market. However, it is essential to exercise caution:
- Monitor the Age Consumed metric for any further shifts in dormant token activity.
- Stay informed about the prevailing sentiment and technical indicators to gauge market direction accurately.
- Implement risk management strategies to protect your investments in case of unforeseen price fluctuations.
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