In this new episode of Wednesday’s crypto where we analyze the price of a cryptocurrencywe will focus on the native cryptocurrency of the Sushiswap protocol, SUSHI. After experiencing a nice growth at the end of 2020, as well as in the first months of 2021, the price continued to lose value, gradually revisiting levels it had not seen for more than two years. Today you will have the opportunity to discover key asset levels and the biases you should have for the coming weeks. Without further ado, let’s jump right into TradingView.
SUSHI is still stuck in its technical range
First, inweekly rateyou can see the long evolution of SUSHI within a technical range. Since June, the asset has moved between a lower limit at 1 dollar and an upper bound on $1.55. After the upward deviation in October, which enabled it to find the high wick of the end of May, the asset has deviated downward during the month of December.
Now, the asset has returned to the upper part of the range and is currently heading towards the upper limit. The main question is to determine as soon as possible which of the two limits will be subject to price pressure since a breakout will allow the price to start a new trend on a weekly scale.
At the moment, in this unit of time, SUSHI is below the previous peak. If it fails to break free from it and if it breaks the lower lower bound by registering a lower bound than the December deviation, the price will trigger a new downward dynamic. In this context, a return to $0.60 (October 2020 low) should be considered.
The SUHI situation is interesting, but nothing has been decided yet
INdaily rate, we have a more detailed picture of the fluctuation that the price has undergone in recent months. What we can see is that the area located in $1.31/$1.34 it functions as a center. In many, many cases, the award has been declined or had the opportunity to be reinstated. Currently, SUSHI is in difficulty and evolves under this pivot as it struggles with MA100, a dynamic technical level. In order to have confirmations in favor of a return to the upper limit that is in line with the EMA200, SUSHI will have to overcome the confluence of the pivot zone and the MA100 with a daily close above $1.35.
However, if SUSHI is unable to overcome these resistances and is rejected on the downside, what are the levels to watch? We can monitor price reaction in the triple EMA, which gives us a good approach to the price trend, which, on a daily basis, is bullish. If the price manages to hold up, it is quite possible that there will be another attempt to break out of the pivot zone.
However, if SUSHI picks the path of a reversal of the current trend, two levels can make the price react. A technical level (not represented on the chart) at $1.08/$1.09 and then support which is the lower limit of the range. The pivot zone is the key level to monitor on a daily basis and unfortunately, as long as the price moves below this zone, it is harder to hope for a continuation of the price increase despite the strength of the moment.
Here we are at the end of this technical analysis of SUSHI the native cryptocurrency of Sushi Exchange Protocol, an asset that is in a daily uptrend despite being in a weekly range for several months. Still below its pivot zone, this is the level to watch as staying below, the preferred bias is bearish. However, this prejudice may change if SUSHI manages to overcome it. To do this, bullish momentum should be maintained on smaller time frames such as H4 and H1. Looking to go long in a technical setup is not the best thing to do, on the contrary. It is better to wait for other signals or, in case you are looking to enter the asset with a short position, you will have to watch for the first signs of a reversal with loss of the trend, first in H4.
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