An early session overflow on SushiSwap’s SUSHI market turned into a buying opportunity for traders looking for security against a dwindling cryptocurrency market this Monday.
The SUSHI / USD exchange rate rose more than 24 percent from its intraday low of $ 12.80. Traders saw upside opportunities in the pair when the relative strength indicator flashed near oversold signals. They raised their bids to offset their losses elsewhere in the cryptocurrency market.
So it seems that profits in the SUSHI market largely coincided with a slump in Bitcoin, Ethereum and other high-cap digital assets. In total, the cryptocurrency had lost more than $ 25 billion by 1105 UTC on Monday, with Stellars XLM, Ripple’s XRP and UniSwaps UNI – a SushiSwap rival – recording the highest losses.
SushiSwap jumps as the rest of the cryptocurrency market stumbles. Source: SUSHIUSD on TradingView.com SushiSwap jumps as the rest of the cryptocurrency market stumbles. Source: SUSHIUSD on TradingView.com
SUSHI Trade Setup
Technically, SUSHI recovered after testing a confluence of two levels of support. The first floor of the price appeared to be an upward sloping trendline representing an ascending channel pattern. In the meantime, the second level of SUSHI’s simple wave moving average of 100-4H came.
The rebound opened up prospects for the DeFi token to extend its upward move to $ 17.61, its all-time high, followed by a surge to the upper trendline of the ascending channel, which is now near the 18.80-19 area. 00 USD.
Michaël van de Poppe, an independent market analyst, noted that SUSHI could also decline towards lower levels if it does not hold USD 14.50-14.75 as a preliminary support range.
“If that is not enough, further bearish momentum is expected and the bearish divergence confirmed. Next, let’s look at $ 12 and $ 10, ”he said.
Basics
The latest upward rally has boosted the daily gains of the SushiSwap token to 470 percent. Initially, traders started entering the SUSHI market because of their representation for a decentralized exchange. Many retailers, disappointed with the restrictions on trading stocks on platforms like Robinhood, turned to centralized and decentralized cryptocurrency exchanges.
As the excitement ensued, the volume on crypto trading platforms grew exponentially. Meanwhile, their native tokens saw a surge in demand that later turned into a massive bull rally. For example, Binance’s native cryptocurrency BNB hit a record high of $ 148 last week.
SUSHI seemed to have benefited from the same buzz that spilled over into its market during the Monday session. In the meantime, it’s important to note that the token remained underbought and offered better opportunities for traders looking for short-term safe havens against the cryptocurrency market’s downward revision.
