SushiSwap (SUSHI) recent price surge of nearly 20% has attracted attention, but suspicions of crypto market manipulation have cast a shadow over its remarkable performance.
Lookonchain’s analysis reveals intriguing activity in SushiSwap’s ecosystem, raising concerns about the authenticity of this bullish momentum.
SushiSwap experiences 20% price surge amid suspicions of crypto market manipulation
SushiSwap (SUSHI) crypto recently experienced a remarkable price surge, soaring nearly 20% in a short period of time.
This sudden surge has raised concerns about potential market manipulation, as it has led to the liquidation of three times as many short positions as long positions.
Based on the latest data, the price of SushiSwap has approached the crucial psychological level of $0.80, and speculation about market manipulation is mounting.
In light of these developments, the cryptocurrency community and investors are moving cautiously to avoid being caught off guard.
The obvious growth of the token
The bullish momentum of SUSHI’s price is evident through a significant green candle on the charts. SUSHI has outperformed many other cryptocurrencies in the highly competitive digital asset market.
However, the legitimacy of this rapid price surge is now being questioned, mainly due to observations made by Lookonchain, a web-based blockchain analysis tool3.
Lookonchain, which specializes in collecting data from decentralized exchanges and providing this information to the public, has identified some irregularities that could suggest potential market manipulation in the SushiSwap ecosystem.
In the past 24 hours, SushiSwap’s price has surged nearly 20%, accompanied by a substantial increase in trading volume of about 445%.
This impressive performance has placed SUSHI ahead of most other cryptocurrencies, even those in the coveted top ten list.
Lookonchain’s analysis questioned the legitimacy of this meteoric rise
According to Lookonchain’s findings, there are indications of suspicious activity on the blockchain, raising concerns about possible market manipulation.
The main suspect behind this activity appears to be an entity that went long on SUSHI with the intention of profiting from this maneuver. The details revealed by Lookonchain are indeed intriguing.
This entity, associated with a new wallet, has been actively buying SUSHI crypto tokens on decentralized exchanges while depositing Circle’s USDC stablecoin on other types of exchanges, notably dYdX.
The intriguing aspect of this transaction lies in the fact that the wallet used a multitude of new addresses, over 90, for these transactions.
The intent of these actions becomes evident when we get into the specifics. The wallet committed 640,000 USDC to purchase a substantial amount of SUSHI tokens (specifically, 900,514 SUSHI tokens) at a unit price of $0.71 per token.
Lookonchain’s analysis indicates a clear motive: the entity aims to profit by increasing the price of SUSHI and creating long positions in the token.
The implications of such activity are multiple. On the one hand, it suggests a potential attempt to manipulate the market for personal gain, which raises concerns about the integrity and fairness of the cryptocurrency market.
On the other hand, it serves as a warning to investors and traders seeking to capitalize on the recent surge in SushiSwap prices.
In conclusion, SushiSwap’s recent price surge, while impressive, has been clouded by suspicions of manipulation, as evidenced by Lookonchain’s findings.
Investors and market participants must exercise vigilance and caution when navigating this dynamic and highly competitive landscape.
The cryptocurrency community will be watching these developments closely, as they have the potential to affect the overall perception and stability of the SushiSwap ecosystem.
Source: https://en.cryptonomist.ch/2023/11/02/sushi-crypto-market-manipulation/