The digital currency arena is witnessing a remarkable phenomenon as SushiSwap (SUSHI) experiences a notable surge in its price, recording an almost 20% increase. This surge, however, brings with it whispers of potential market manipulation, stirring cautious optimism among investors and market analysts alike. Notably, this has resulted in the liquidation of short positions at three times the rate of long positions, showcasing the asymmetrical impact on market participants.
At the heart of the discourse is a fresh wallet, actively acquiring SUSHI through decentralized exchanges (DEX) and subsequently depositing USDC into perpetual exchanges like dYdX via a multitude of addresses. This strategic maneuver has raised eyebrows, with Lookonchain, a respected web3 blockchain analytics tool, suggesting the possibility of manipulation. It speculates that the wallet’s intention could be too long for SUSHI for financial gain, a move characteristic of smart money operating in the crypto space.
The price of $SUSHI is up 16% today.
— Lookonchain (@lookonchain) October 31, 2023
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
Moreover, the data reveals that the wallet in question has invested a substantial 640,000 USDC to purchase 900,514 SUSHI tokens, each valued at $0.71. This investment has undoubtedly played a role in propelling SUSHI’s price to its current standing at $0.813324, marking a 24.64% increase over the last 24 hours and a 33.28% increase over the past week. Consequently, this activity has swelled SUSHI’s market capitalization to an impressive $155,702,583, given its circulating supply of 190 million tokens.
Additionally, technical indicators echo the bullish momentum SushiSwap is experiencing. The 4-hour Relative Strength Index (RSI) stands at a towering 87.48, signaling potentially overbought conditions.
Simultaneously, the Moving Average Convergence Divergence (MACD) indicator trends upwards, corroborating the heightened buying pressure. The market activity, together with these indicators, portrays a cryptocurrency experiencing a robust short-term upward trend.
Investors and market participants are advised to tread carefully and diligently in this situation. In such volatile times, grasping the underlying dynamics and potential risks is essential for informed decision-making and protecting investments.
