Low Sushi Turnout on Crypto Exchanges Raises Bullish Breakout Potential

New Delhi (CoinChapter.com) — The market crash in May saw cryptocurrencies lose more than $1 trillion. Nearly all cryptocurrencies suffered setbacks in the fall precipitated by Bitcoin. Many tokens saw their price drop by almost 50%. Yet, the emergent DeFi sector and stablecoins remained relatively steadfast.

SushiSwap is a decentralized crypto exchange and market maker built on Ethereum. SushiSwap (SUSHI) was one of the DeFi tokens that held their ground amidst a crumbling market. As a matter of fact, DeFi exchange volume on May 19 was at a record high of $11.7 billion. Sushi had the second-highest share of this volume at $2.8 billion.

The number of daily traders in DEX has seen growth as well.

Now, Glassnode pointed out that Sushi exchange deposits have reached a 1 month low.

📉 $SUSHI Number of Exchange Deposits (7d MA) just reached a 1-month low of 7.810

View metric:https://t.co/rMPZEV5Gbr pic.twitter.com/99daHcExeJ

— glassnode alerts (@glassnodealerts) June 2, 2021

Why Sushi Is Everyone’s Choice Right Now

Sushi’s decreasing exchange volume indicates traders are moving their tokens to private wallets, which is a sign of a ‘hodling.’ In the past week, Sushi reserves have declined by 13.13%, from 20.40 million to 17.73 million. In comparison, the price has increased by 4%.

The ERC-20 token reached an ATH of $23.4 on March 13. At present, it is trading at about $12. Recent price trends show the coin to be trading above the 50 days SMA. As such, analysts predict that the bearish phase has run its course and a bull reversal is on the horizon. The next resistance level seems to be at $13, as the token last touched this milestone on May 26. Crossing this will certainly add to the bullish sentiments already forming.

Analysts have positive forecasts for the token, with many believing that Sushiswap will take some Uniswap users. Crypto analyst Jon sushi will bring trading and liquidity across blockchains.

(3) $AAVE will bring lending and borrowing to everyone, anywhere in the world. $SUSHI will be the community powered exchange bringing trading, liquidity, and farming to all chains. $SNX will bring the stock markets of the world on-chain. #BTC will be used as the new Gold.

— Jon // (@nosleepjon) May 27, 2021

Business news website TheStreet.com too has high expectations for Sushi, as they said Sushi has the potential to outperform BTC.

$SUSHI, $STACK and $DENT could all have the potential to outperform #BTC in June.https://t.co/zTq2irrEF1

— TheStreet (@TheStreet) June 2, 2021

What Does The Future Hold

Sushi holds all the right metrics to reverse the current bearish phase. Some analysts think that the Sushi’s bull run has already begun, while others predict it is around the corner. The MACD indicator is a metric that signals a change in momentum. For Sushi, MACD signals a reversal of the bearish trend. The number of traders entering the DeFi Exchange has grown as well. While a majority gravitate towards Uniswap, Sushiswap is not behind at number 4.

Bullish trends and analyst forecasts, both favor the token. This can lead to a price rally in the very near future.