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

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


  • 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. 


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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

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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