SushiSwap (SUSHI) has attracted attention recently due to its notable price movements and significant changes in market sentiment. In the volatile period of early 2021, SushiSwap underwent a drastic decline, with its value dropping sharply from peaks exceeding $5.00 to lows falling below the $1.00 mark.
As the price plunged, it encountered strong support around the $0.60 level, effectively preventing further decline. This marked a crucial support threshold that prevented deeper losses. Following this, a phase of consolidation followed, characterized by the price fluctuating primarily between $1.00 and $2.50. During this period, significant market responses occurred at key support and resistance levels.
The $1.20 mark emerged as a robust support level, evidenced by multiple instances of price stabilization during the highlighted period from mid-2022 to early 2023. Additionally, the $2.50 resistance level looms large, acting as a formidable barrier to upward momentum. Alongside, the $5.00 threshold stands as a historical point of resistance preceding the significant downturn.
The projection into late 2024 and 2025 suggests an anticipatory bullish movement, indicated by the green arrow, implying a potential breakout above the current consolidation zone towards higher resistance levels.
SushiSwap has exhibited a resurgence, with the price currently hovering around $1.12, reflecting a notable uptick of 7.67% over the previous day. This resurgence is mirrored in the market capitalization, which has surged by 13.20% to approximately $278.9 million, indicative of heightened buying activity. Moreover, a 30.44% increase in the 24-hour trading volume underscores a vibrant market characterized by active participation.
Delving deeper into support and resistance analysis, pivotal levels emerge, with $1.04 serving as a critical support threshold, showcasing strong buyer interest and price stabilization. Conversely, the $1.17 mark emerges as a key resistance level, where selling pressure may outweigh buying momentum, triggering corrective movements.
While SushiSwap’s recent surge instills optimism, caution is warranted, as overbought conditions indicated by the 1-day stochastic RSI signal a possible price correction. Nonetheless, the bullish momentum suggested by the MACD underscores the potential for further upside amidst a backdrop of strong market trends, as indicated by the ADX reading of 32.95.
