SushiSwap (SUSHI/USD) Nearing the $0.800 Price Level Amidst Bearish Divergence
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Since October 20th, the SushiSwap market has exhibited a continuous upward trend, gaining momentum towards the $0.700 price level. After successfully attaining this level, the next potential milestone could be the $0.800 price mark, which is significant as it marks the point from which the bear market initiated back in mid-August.
However, there are valid reasons to approach the feasibility of the bull market reaching this target with caution. While the market appears to be moving towards its desired price level, some of the indicators used for this analysis have failed to provide a strong signal that would unequivocally confirm the strength and sustainability of the bullish trend.
The SushiSwap Market Data
- SUSHI/USD Price Now: $0.687
- SUSHI/USD Market Cap: $159,322,741
- SUSHI/USD Circulating Supply: 231,360,554 SUSHI
- SUSHI/USD Total Supply: 249,936,183 SUSHI
- SUSHI/USD CoinMarketCap Ranking: #170
Key Levels
- Resistance: $0.700, $0.750, and $0.800.
- Support: $0.580, $0.530, and $0.500.
The SushiSwap Market Price Forecast: Analyzing the Indicators
Analyzing the SushiSwap market through the lens of the Bollinger Bands indicator reveals a promising scenario for the bull market. The price action comfortably resides well above the 20-day moving average, and it does not exhibit signs of significant deviation beyond the Bollinger Bands, suggesting that an extreme overbought condition is not in play.
However, a closer examination of the trade volume indicator reveals a bearish divergence between the price action and the histogram of the indicator. This discrepancy implies that, despite the apparent strength of the bull market, there may be a lack of conviction among traders, potentially hindering their ability to sustain the current trend.
It’s worth noting that if the current market dynamics are primarily influenced by large market participants, often referred to as ‘whales,’ they have the potential to instigate a robust bullish sentiment among traders if the current trend continues.
SUSHI/USD 4-Hour Chart Outlook
Examining the same market through the lens of the 4-hour chart, the most recent candlestick is now supported by a substantial trade volume histogram. This suggests a growing investor interest, with more traders participating in the bullish market, potentially enhancing the prospects for a sustained uptrend.
However, due to overbought conditions, the price is currently experiencing a pullback. If the bulls can successfully establish a support level around the $0.700 price mark, there is potential for a breakout above the existing resistance.
