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SUSHI Price Analysis: Sushiswap tanks with a  weaker dollar as bulls clean out their closet

  • Sushiswap slides near 2% on the last trading day of 2022.
  • SUSHI cannot enjoy the effects of the weaker Dollar which touched 1.0697 (EUR/USD) to the upside.
  • Expect to see Sushiswap rip further lower towards $0.85 in a final sell-off of the year.

Sushiswap (SUSHI) is selling off in the last trading hours of this year. While most banks and exchanges will close at regular hours, volumes are thin. The best example is the EUR/USD which popped higher from 1.0640 to nearly 1.0700 in a matter of minutes and normally should be helpful for equities and cryptocurrencies. But it seems that the last straw of the last-minute miracle is a dud.

Sushiswap is set to break lower with a 7% decline at hand

Sushiswap (SUSHI) price tanks in very thin trading in these last trading hours of 2022, as most  traders come out of markets. While a lot of traders were still betting on a rally in this thin liquidity moment, the opposite effect has got triggered. Bears have seized the moment to run price action into the ground and perform a bull trap on Tuesday with the pop above $0.9938 and value tanking roughly 9% since then.

SUSHI still has some way to go and could see bears eke out a new low for this year if price action drops further toward $0.8567. That means the already 9% decline adds an extra 7% of losses and results in 16% for the week. It was not the worst week for SUSHI in 2022, but it was still enough to push traders out and not see them back again for the first weeks or months of 2023.

SUSHI/USD daily chart

SUSHI/USD daily chart

Looking forward to any rally that could be triggered in the near future would depend on the headline or catalyst that is triggering that mode. Bear in the back of your mind for 2023 that the key pressure from inflation, the Ukrainian war, and recession fears are the three main topics that will determine the outcome for cryptocurrencies, and any positive headline on those three elements could see cryptocurrencies recover. The first level is at $0.9938 before bulls can follow through on their rally, with $1.10 as an ideal candidate for the test against the red descending trend line. Have a good New Year, and see you in 2023!

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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