Crypto News

Low Sushi Turnout on Crypto Exchanges Raises Bullish Breakout Potential

Photo by Frank Busch on Unsplash
Photo by Frank Busch on Unsplash

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.

DeFi Exchange Volume for last month. Source: @hagaetc at duneanalytics.com
DeFi Exchange Volume for last month. Source: @hagaetc at duneanalytics.com

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.

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%.

Sushi's Balance on Exchange. Source: Sushi All Exchange Reserve on cryptoquant.com
Sushi’s Balance on Exchange. Source: Sushi All Exchange Reserve on cryptoquant.com

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.

Sushi price trend. Source: SUSHIUSD on Tradingview.com
Sushi price trend. Source: SUSHIUSD on Tradingview.com

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.

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

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.

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Anshuman Roy - CoinChapter
Anshuman Roy

A Delhi based content writer, I did my bachelors in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.

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