Sushi is emerging as one of the biggest gainers on Tuesday, surging almost 20% in 24 hours to $0.75. The token native to the decentralized exchange (DEX) SushiSwap has continued to sustain this bullish structure, gaining 25% in 30 days, 39% in two weeks, and 26.5% in the last week.
The trading volume backing the uptrend has continued to increase, with $83 million coming in 24 hours. Sushi boasts $143 million in market capitalization and ranks #216 among other cryptos including stablecoins.
Sushi Price Explodes Toward $1
Sushi like the majority of cryptos in the market has endured a long-standing crypto winter, falling 96.8% from its all-time high of $23.38 in March 2021. The confirmation of a double-bottom pattern support at $0.5322 allowed bulls to take back the reins and determine the next direction. Sushi price stepped above the first major hurdle at the 50-day Exponential Moving Average (EMA) (red) — a move that reinforced the bullish control.
The subsequent climb above the 100-day EMA (blue) resistance paved the way for the ongoing bullish action in an engulfing candle, bringing Sushi close to a double-bottom pattern breakout.
However, resistance at the 200-day EMA still stands in the way of the breakout expected from the neckline resistance at $0.7785. This means that traders should focus on pushing above this blockade to increase the chances of Sushi climbing above $1.
Meanwhile, the position of the Relative Strength Index (RSI) at 84.29 cautions traders to stay alert to avoid bull traps. In other words, the highly overbought RSI signals that a potential correction could be in the offing. It would be prudent to watch out for the index’s retreat into the neutral as confirmation of a pullback.
On the bright side, Sushi is still poised for the double-bottom pattern breakout at the neckline resistance. Note that such a breakout would be accompanied by a significant increase in trading volume.
Sushi price would be expected to surge almost by 32% to $1.02 — a distance equal to the height of the pattern.
Are Whales Manipulating Sushi Price?
Lookonchain, a blockchain data monitoring platform highlighted the massive increase in Sushi price today but warned of possible price manipulation.
According to Lookonchain “someone is manipulating the price of $SUSHI and going long $SUSHI to make profits.”
The price of $SUSHI is up 16% today.
It seems someone is manipulating the price of $SUSHI and going long $SUSHI to make profits.
A fresh wallet is buying $SUSHI on #DEX and depositing $USDC to perpetual exchanges such as #dydx through multiple addresses(probably long $SUSHI). pic.twitter.com/IQQ93xE2PQ
— Lookonchain (@lookonchain) October 31, 2023
The post on X (formerly Twitter) revealed that a new wallet was buying SUSHI on the decentralized exchange and depositing stablecoin USDC to perpetual exchanges like dydx using “multiple addresses (probably long SUSHI).”
Manipulation or not, Sushi’s double-digit increase is bound to attract investors who may want to ride the uptrend. Traders yet to get in on the longs may, however, want to wait for Sushi to break above the neckline resistance at $0.77 to validate the uptrend’s continuation and avoid possible dips.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
