Sushi price drops 25% but on-chain metrics indicate it still has room to grow
|- Sushi price had a significant but healthy 25% correction after a massive uptrend.
- Several on-chain metrics remain heavily bullish and indicate Sushi can climb higher.
On November 6, 2020, Sushi started a major rally from a low of $0.472, reaching $4.163 in January 2021. So far, bulls have been in control of the trend and there have been no red flags.
Sushi price aiming to establish a new high after a healthy correction
Sushi is down by 25% since January 4 but it seems that several on-chain metrics remain in favor of the bulls. Despite the price plummeting, the number of Sushi coins inside exchanges has continued to decline since December 20, 2020, from 42.7% to only 22% currently.
SUSHI supply on exchanges chart
Additionally, the number of whales holding between 100,000 and 1,000,000 coins has increased since January 1 from 18 to 25, indicating that investors are willing to buy the dip and expect Sushi price to rise higher.
SUSHI Holders Distribution chart
However, in the short-term, the bears are in control right now after establishing a clear downtrend on the hourly chart, setting several lower highs and lower lows.
SUSHI/USD 1-hour chart
Sushi dropped below the 100-EMA briefly but has rebounded. A clear breakdown below the 100-EMA will quickly push the digital asset down to the 200-EMA at $3.08. Losing this level would be notable and could potentially send Sushi towards $2.4.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.