- SushiSwap led the DeFi sector in recovery by spiking massively to trade highs of $1.45 in November.
- A reversal from the monthly high is in the offing following the rejection from the resistance range between $1.33 and $1.45.
SushiSwap has recently become a decentralized finance (DeFi) darling token. The massive gains posted in the last 14 days have brought the once-troubled cryptoasset back into the limelight. SushiSwap is changing at $1.28 at the time of writing after growing by over 200% since the beginning of November. The losses seem to be coming back into the picture on SushiSwap hitting October's hurdle between $1.33 and $1.45.
SushiSwap retreat seems imminent
Sellers appear to be streaming back in masses, aiming to regain control over the price and perhaps erase some of the gains accrued in November. The Relative Strength Index on the 4-hour chart gives credence to the bearish outlook after sliding from the overbought region.
The first point of contact in case declines progress is $0.84, but if the bearish grip becomes more vigorous, SUSHI will seek support at $0.47. All the three simple moving averages; the 50 SMA, 100 SMA and 200 SMA, will absorb some of the selling pressure, preventing SushiSwap from plunging massively.
SUSHI/USD 4-hour chart
The TD Sequential indicator has presented multiple sell signals in the form of green nine candlesticks on the 4-hour, 12-hour, and daily charts. In other words, the uptrend may have hit its elastic limit, and SUSHI could commence dumping.
SUSHI/USD 4-hour, 12-hour and daily charts
It is worth mentioning that Santiment's Network Growth metric highlights a spike in the number of new addresses joining the network. If sustained over time, rising network growth is usually a bullish sign for the asset's value.
 [09.51.03, 16 Nov, 2020]-637411073553985240.png)
SushiSwap network growth chart
On the flip side, declining network growth highlights the possibility of the price falling soon. Therefore, the spike in SUSHI's network growth invalidates the bearish outlook and affirms SUSHI's potential to continue with the rally.
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
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.