Connect with us
Active Currencies 13905
Market Cap $2,404,536,375,215.26
Bitcoin Share 51.62%
24h Market Cap Change $-3.86

SushiSwap: Estimating the viability of a trend reversal based on these metrics

2min Read
SushiSwap: Estimating the viability of a trend reversal based on these metrics

Share this article

  • SushiSwap’s market indicators suggested a potential trend reversal. 
  • However, SUSHI’s on-chain metrics remained bullish. 

On 24 January, DeFiLlama revealed that the trading volume of SushiSwap [SUSHI] on Arbitrum was steadily increasing. As per the tweet, on 23 January, 44.6% of the total SushiSwap trading volume occurred on Arbitrum. 

Is your portfolio green? Check the SushiSwap Profit Calculator

Apart from trading volume, SUSHI’s price also increased over the last week. SUSHI registered over 6% weekly gains, and at the time of writing, it was trading at $1.36 with a market capitalization of more than $303 million.

While these updates looked optimistic, the market indicators told a different story. 

Cold days for SushiSwap again?

A look at SUSHI’s daily chart revealed that there was a possibility of a trend reversal soon, as a few of them were bearish. The Money Flow Index (MFI), after registering a decline, took a sideways path. SUSHI’s Chaikin Money Flow (CMF) went in the same direction as MFI.

Moreover, the Relative Strength Index (RSI) entered the overbought zone, which further increased the chances of a price decline in the days to follow. Nonetheless, the Exponential Moving Average (EMA) Ribbon gave hope for a continued uptrend. 

Source: TradingView

Realistic or not, here’s SUSHI market cap in BTC’s terms

This is what metrics suggest

Surprisingly, the on-chain metrics supported the bullish sentiment, as they were in SUSHI’s favor. Net deposits on exchanges were low compared to the seven-day average, which was a good signal as it indicated lower selling pressure.

Santiment’s chart revealed that SUSHI was in demand in the derivatives market, as its DyDx funding rate was up. SUSHI’s MVRV ratio also increased substantially, which looked bullish. Furthermore, SushiSwap’s development activity has increased in the last seven days, reflecting the developers’ increased efforts to improve the network.

Source: Santiment


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.