• 30 May, 2024
Market News Markets

Will SushiSwap’s $1.17 Be the Make or Break Level?

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.

Source: CryptoCapo

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.

SushiSwap/USD 1-Day price chart, Source: Trading view

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.

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