SUSHI pumps up 22% amid growing TVL on SushiSwap’s Arbitrum network

“Sushi 003” by cofluoxetine is licensed under CC BY-NC-ND 2.0

SUSHI/USDT pair scaled up higher and added 22% gains to the ongoing uptrend.
TVL on SushiSwap’s Arbitrum network touched $30 million.
SushiSwap is the only DeFi protocol that is actively operating on 13 blockchains.
SUSHI is trading in overbought territory.

JAIPUR (CoinChapter.com) – SushiSwap’s native token SUSHI rallied 22% to tap $16.1 in the noon London session on Monday. The SUSHI/USDT pair experienced a surge in buying pressure on the back of rising total value locked (TVL) numbers on the DEX’s Arbitrum network.

SUSHI stands to soar much higher than the prices at which the token is currently trading.

“$SUSHI is a $50 coin currently priced at $15
The most undervalued token in crypto”
said SUSHI BOYZ, who goes by the handle “LilMoonLambo” on Twitter

What Is SushiSwap?

SushiSwap functions as an automated market maker (AMM). It lets traders exchange cryptocurrency assets (mostly Defi tokens) without centralized control. SushiSwap automatically sets prices of the trading tokens with algorithms and processes trades using smart contracts.

Like other platforms, the DEX lets users engage in “liquidity mining,” where they lend their blockchain tokens to “liquidity pools” in exchange for rewards. SushiSwap is a fork of Uniswap. The platform’s developers borrowed from Uniswap’s code to create SushiSwap.

Multi-chain Existence Especially Arbitrum

One of the crucial drivers of SUSHI’s price is SushiSwap’s availability on 13 blockchains, including the recently launched Arbitrum. Therefore, the integration with Arbitrum is of special significance. In addition, the Layer 2 Ethereum scaling solution has garnered the reputation of being one of the top Ethereum scaling solutions within a relatively short period.

Ethereum currently processes around 15 transactions per second on its base layer. However, the Arbitrum development team claims to push the said throughput to 2,000 to 4,000 transactions per second. Maybe even more.

“For simple transfer transactions that do not carry their own calldata, our benchmarks have shown that Arbitrum will allow for up to 4,500 transfer transactions per second. The Arbitrum block explorer gives detailed cost benchmarks for all transactions posted on the Arbitrum Rollup testnet chain, and is a very useful tool for benchmarking specific workloads.”
an excerpt from Arbitrum Rollup Basics

SUSHI buyers also analyzed SushiSwap’s Arbitrum extension usage reviews to place long bets on the DEX token.

SUSHI/USDT Technical Setup

But excessive buy orders pushed SUSHI into the overbought territory. As a result, the relative strength index (RSI) reading for the SUSHI/USDT pair clocked 81.5 deeming it vulnerable for an impending selloff.

However, the bullish momentum could continue further on account of a recent golden cross occurrence. Golden crosses are bullish technical setups in which the 50-day exponential moving average (50 EMA) wave crosses over the 200-day exponential moving average (200 MA) wave.

Bears could ruin SUSHI’s bullish party. Source: SUSHIUSDT on TradingView.com

Nonetheless, profit takers are bound to enter the scenario and push SUSHI prices down near $14 and beyond, till $12. But that’s the worst-case scenario. Therefore, bulls would look to buy all the dips since, fundamentally, the SUSHI/USDT pair is well-placed for a higher rally.