SUSHI Continues Tumbling After Closing Nine Consecutive Weeks in the Red

Share Article
In Brief
  • SUSHI is trading inside support at $0.60. The closest resistance area is found at $0.71.

  • The price is trading inside a descending parallel channel.

  • There are no signs of a bullish reversal.

  • promo

    Gravity Dex Protocol: Bringing DeFi to Cosmos

The Trust Project is an international consortium of news organizations building standards of transparency.

Sushi (SUSHI) seemingly began an upward move on Oct 7 but failed to sustain the increase and has lost almost all of its gains since.

Sponsored



Sponsored

On Oct 7, the SUSHI price reached a low of $0.551. An upward move began the next day and SUSHI increased by 57% in three days, reaching a local high of $0.873 on Oct 10.

Sushi Retraces To Support

At the time of writing, SUSHI had dropped back to the $0.60 support area, which is the 0.85 Fib level of the entire upward movement. In addition, it is the final support level before the Oct 7 lows, a decrease back to which would mark a 100% retracement.

Sponsored



Sponsored

On the other hand, a bounce could take the price to the closest resistance level at $0.71.

SUSHI Chart By TradingView

Descending Channel

Cryptocurrency trader @Mesawine1 outlined a SUSHI chart, stating that the price could soon begin to increase and could possibly return to the $1.40 level.

The increase is expected to begin once the if SUSHI can break out from the current descending channel.

Source: Twitter

While the price is indeed trading inside a descending channel, there are no clear indications that it will break out.

On the contrary, both the MACD and RSI are indicating that the trend is bearish since the signal line of the former is below 0 and the latter is below 50. There are no bullish divergences in either.

The previously mentioned $0.60 support area coincides with the middle of the descending channel, so a breakdown could trigger a drop towards the support line of the channel near $0.50.

SUSHI Chart By TradingView

Conclusion

There are no signs that the SUSHI price will be able to stop the bleeding in the short term. On the contrary, a loss of the $0.55 area could take it into a new phase of bearish price discovery.

For BeInCrypto’s latest Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go