Is SUSHI Price Moving Near the Demand Zone?

Presently, SUSHI is trading near $1.00 and the buyers are refusing to let the price fall below this level. For the past few weeks, investors have been making consistent attempts to break its current barrier, without success. 

They have been defending the current demand level for the past 11 months. The present pattern creates a strong probability that the buyers may repeat historical price action and lend their support to the SUSHI token at current levels.

Despite the positive price pattern, the majority of the technical indicators are giving bearish indications. SUSHI price has been facing severe resistance from the 200 EMA for the past few months and even after making multiple attempts to break the resistance, the attempts were proven to be futile.

However, the bulls are persistent and they may make another attempt to gain control back from the bears which will create a beneficial opportunity for the investors.

The present value of SUSHI is $0.86, with a market cap of $348.86M

A Decline in Social Engagement and Bullish Sentiment in SUSHI Token

Investor sentiments are losing the bullish edge. Total bullish sentiment metrics are currently observing a decline of 64.36% within the last month. A slight decrease is also seen in the total social engagement level of 23% according to the LunarCrush. 

These metrics suggest that potential buyers are getting less active across various media platforms.

Technical Analysis (1-Day Timeframe)

If the price acquires sufficient support from the buyers near $1.000, it can make a bullish rally of 40% within the next few weeks. Its recent resistance level is around $1.2000 price near the 200 EMA.

The RSI line recently took a reversal from the demand zone giving a positive crossover above 14 SMA. The value of the RSI line at present is 37.25 points; 14 SMA is providing support to the RSI line at 36.01 points. 

The current value of Stochastic RSI is 72.72 points. Stochastic is trading against the RSI line near the overbought level at present. The %K may give a bearish crossover to the %D line in the near future. 

Conclusion

According to the analysis, SUSHI will require significant support from the buyers in order to recover its value in the near future. The price action indicates that it is currently in the early stage of a reversal.

Technical levels –

Support – $0.850

Resistance –  $0.1200 

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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