As cryptocurrencies show up again, some tokens are expected to present better opportunities than others. Just don’t pick up a token because it has posted gains. SushiSwap (SUSHI/USD) is one of those tokens you should consider investing in now. A breakout indicates a positive price trajectory.
SushiSwap prides itself as the blockchain for everyone. Users can swap, earn, lend, borrow, and stack yields on the DeFi platform. For that reason, SushiSwap grew immensely last year as DeFi applications gained interest. Its native token, SUSHI, touched $23 in March 2021 but has since then been on a downward spiral.
Recent price action has suggested that SushiSwap was gearing for a recovery. For more than 5 months, the token has defended its price at around $1. The cryptocurrency now trades at $1.65 after adding more than 14% in the past week. We believe more gains are likely, according to the daily chart below.
SUSHI initiates a recovery after a breakout at $1.30
Source – TradingView
A technical outlook shows SUSHI pushing higher after breaking above a descending trendline at $1.30. A short-term bullish trendline has emerged from the $1.00 price bottom. A system of higher highs and higher lows reinforces a bullish momentum.
The MACD indicator also shows an increasing momentum. The indicator is going further into the bull territory. The 20-day moving average crossed above the 50-day moving average, a further bullish indicator.
Should you buy SUSHI?
SUSHI price could build on the bullish trend and ongoing recovery to go higher. The area around $1.90 could offer resistance, although a price higher up to $3.00 is attainable. A retracement in the price of SUSHI should be an opportunity to buy the cryptocurrency.
If the bull strength fails, then the area to watch would be $1.30. To a diligent investor, however, any price above $1 is attractive for SUSHI.
Where to buy SUSHI
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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SushiSwap rose by 13% on Thursday
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GoldenTree revealed a $5.3 million holding
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SUSHI has hit the descending trendline, and the focus will be on the price action
Sushiswap SUSHI/USD rose more than 13% on Thursday, capping a substantial 18% gain in the past week. The gains on Wednesday reflected surging trading volumes up more than 130% as of press time. Positive news was behind the surge.
On October 5, global asset manager Golden Tree revealed a stake of $5.3 million in SushiSwap. The asset management firm controls about $50 million in assets. That indicated a potential big money flow in SUSHI and a validation of the DEX. In its press release, Golden Tree indicated it had been “following SushiSwap for a while.”
Potentially, the news of investment by GoldenTree hints at what is likely to come. The asset manager recently unveiled a digital asset-focused division. The company hinted at more involvement “in all things Sushi.” GoldenTree also plans to help the DEX improve its tokenomics.
The GoldenTree news reawakens SUSHI from its slumber. The token trades at merely $1.2, having topped $23 in 2021 at the height of the crypto boom.
SUSHI meets the descending trendline after the price pump
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
Source – TradingView
Technically, SUSHI’s bullish momentum is confirmed by a MACD crossover. The token had already been gathering momentum above $1. With the level being tested severally this year, it suggests $1 is the potential bottom for SUSHI.
The latest jump has pushed SUSHI to the descending trendline. A break above could attract more buyers, although it remains to be seen how bulls overcome the macro woes. Alternatively, SUSHI could correct at the descending trendline.
Concluding thoughts
SUSHI remains susceptible to correction after hitting a descending trendline. A breakout is also possible, although a weak crypto sentiment could curtail further upside. For now, let price action play out but remember, SUSHI could have found a bottom at $1.