SushiSwap’s SUSHI likely to target $10 if key support holds

Key Takeaways:

• SushiSwap’s native token might target $10 price levels.
• SUSHI jumped more than 86% in nine days.

NEW DELHI (CoinChapter.com) — Decentralized exchange SushiSwap’s native token SUSHI seems poised to reach a double-digit price tag.

However, the move depends on SUSHI holding above the $8.6 price level. The SushiSwap token has jumped nearly 87% in the last nine days, going from $5.08 on Dec 20 to $9.48 on Dec 28. SUSHI’s Tuesday price action was particularly volatile, with prices falling early in the day before recovering later.

The relative strength index is close to overbought levels, clocking 68.08 on the daily charts. RSI moving higher might prompt retail traders to sell, resulting in the uptrend breaking down. Meanwhile, SUSHI faces immediate resistance from its 200-day MA line near $9.6.

SushiSwap is currently bearish in the medium and long-term time frames since both 100-day and 200-day MA trendlines are moving above its token’s prices. A move above its immediate resistance would take SUSHI to $10.1, a price level last seen 43 days back.

On the other hand, the SUSHI token has support at $8.6, which it needs to hold to push the uptrend forward. However, if the support fails, SushiSwap would fall to $8 before recovering. SushiSwap prices broke out of a nearly two-month-long (Nov 2 to Dec 21) descending trendline before rallying upwards.

Also Read: SUSHI pumps up 22% amid growing TVL on SushiSwap’s Arbitrum network.

Furthermore, trend-based momentum oscillator MACD continues to be bullish for the SushiSwap token. Bars on the MACD histogram are expanding, indicating that the MACD line (difference of 12-day and 26-day EMA) is moving above its signal line (9-day EMA of MACD).

Expanding bars are a sign of price momentum gaining strength.

SushiSwap Fundamentals

SushiSwap is an Ethereum-based software that incentivizes users to operate a platform to buy and sell crypto assets. The platform uses liquidity pools where users can lock assets into smart contracts, and traders can trade cryptos from these pools.

Also Read: Crypto analyst gives 3 reasons why SushiSwap DEX is poised to boom higher.

SushiSwap allows users to trade cryptocurrencies without a central operator.

Meanwhile, SushiSwap announced that OpenDAO’s SOS token is now live on its platform. The SOS/WETH pair went live on Sushiswap’s Onsen pool. The DAO pool currently has $1.8 million in TVL, with an annual percentage rate of 705% annualized.

After launching on Dec 26, the Sushiswap DAO pool is currently the sixth-largest on the platform in terms of TVL.

At the time of writing, SUSHI was changing hands at $8.87, down 3% on the day.