SUSHI Growth by 200% in 10 Days and a Test of $4.6 Perspective
The previous two trading weeks on the market turned out to be quite contrasting. To understand the full depth of contrast, it is enough to indicate that the SUSHI price was in the range of 200%.
Good volatility for 14 days, given that the daily volume in the SUSHI market is $427,851,484. Perhaps in comparison with the largest crypto coins this is not an impressive result, but among the DeFi tokens in terms of volume SUSHI ranks 3rd place:
In the previous article we wrote about a possible SUSHI price fall up to the range of $1.28-1.35. However, we did not expect to see a 50% fall in one hour.
SUSHI market collapse and the growth trend slowdown
The terrible SUSHI price collapse, which took deposits from marginal traders and knocked out investors from the long positions, happened due to the trend line breakdown:
Of course, trading volumes during this flow were high. If we compare them with the volumes on 1 December – they are identical. Though, the price growth on 1 December was not even nearly as head-turning as the fall on 23 December.
There were a lot of sellers on the market who were “asked to leave” creating a critical situation. This is confirmed by the fact that the SUSHI price growth trend continues the next day.
If you look at the future prospects of the market, you can see a slowdown in its trend.
The fall on 23 December looks like a powerful false breakout. Although, local highs starting from 2 December are updated each time weaker.
The red curve, built on the latest local highs, shows that now there is a crucial moment in the SUSHI market. Fixing above $3.43, buyers will secure a new momentum for growth with the first serious target of $4.6-4.8.
Alternative scenario of SUSHI price movement
The SUSHI price decrease to $2.83 will indicate the final reversal of the trend and the beginning of a global reversal. The final signal for this scenario will be to fix the price below $2.4. In this case, sellers will again test the range of $1.28-1.35. Thus, this time it will be a protracted and depressing correction.
Today, BTC historical high update (at the time of writing $31,420) again required a large amount of liquidity, which “borrowed” from altcoins and DeFi tokens.
The global BTC price stop and the creation of a broad consolidation will give SUSHI a high chance to implement the test of $4.6-4.8. Nevertheless, the beginning of the correction will depress the entire crypto market. New year – new intrigues. Let’s see which scenario the SUSHI market will choose for itself.
Peter is a crypto analyst who after getting acquainted with the cryptocurrency market in 2017, immediately transferred it to the friend zone. Peter's passion is analysis and forecasting of the cryptocurrency market, including the DeFi space. In his articles you will find accuracy and prudence.
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