Sushiswap Price Analysis: SUSHI breaks down as PCE data points to active Federal Reserve


  • Sushiswap price awaited preferred Federal Reserve inflation measure.
  • SUSHI tanks as the Personal Consumption Expenditures data come in as expected.
  • The upward revisions from the previous month confirm the Fed will step up its game, worsening outlook for cryptocurrencies.

Sushiswap (SUSHI) price tanks and defaults on the monthly S1 support level as bulls head for the exit. The sudden move comes on the last piece of economic data of the week, the Personal Consumption Expenditures (PCE) data, which by coincidence is the preferred inflation measure for the Federal Reserve (Fed). SUSHI bulls look to be throwing in the towel as inflation stands still and is not going further down. To make matters worse, the previous numbers got revised upwards, which means that the decline is even slower than initially thought, confirming that the Fed will hike interest rates more in 2023.

Sushiswap price set to hit $0.85

Sushiswap sees bulls set to forfeit on the monthly S1 support level as the PCE Deflator number out of the United States has not hinted at inflation easing. Instead, inflation looks not to be moving, confirming the Federal Reserve case to keep hiking at 50 basis points per meeting for at least half of 2023. This means another drag on equities and cryptocurrencies, while safe-haven assets as bonds become more attractive in terms of guaranteed returns.

Thus, SUSHI sees its hopes for $1.00 evaporating in this Friday trading session. As many traders are hitting the shops searching for that last Christmas gift, traders at their desks are looking for the right level to offload their remaining stakes in Sushiswap. Expect the sell-off to see a move towards $0.85 and start the last week of 2022 on a downbeat move.

SUSHI/USD daily chart

SUSHI/USD daily chart

Should an upbeat move still occur instead, be aware that it might happen under very thin liquidity, and possibly, once the moves have happened, it will be very difficult to chase. The holy grail to get to is at $1.00, and if broken, $1.1 is the next best viable candidate for a take-profit. That would mean between 5% and 15% of gains. 


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP