- Sushi Swap price is down 40% on the month.
- The bears have produced the steepest downtrend rally witnessed this year.
- Invalidation of the bearish thesis is a breach above $1.54.
Sushi Swap price could be in the beginning stages of a much stronger decline. At the current time, countertrend trading the digital asset could be problematic. Key levels have been defined to gauge Sushi's next potential move.
Sushi Swap price points south
Sushi Swap price saw an impulsive wave headed south going into the third training week of November. Since November 4, the Ethereum-based-AMM token has fallen by 40%. Following the decline, SUSHI auctions within a developing congestion zone near the newfound monthly low at $0.99.
Sushi Swap price currently auctions at $1.23. The bears have produced a sharp decline with an angled slope steeper than the previous selloffs that occurred throughout the summer. Accompanying the trend is a large influx in selling pressure on the Volume Profile indicator on higher time frames. The Relative Strength Index (RSI) breached extremely oversold levels during the $0.99 low.
SUSHIUSDT 8-Hour chart
Considering these factors, the SUSHI price could be in the middle of a much larger decline. A 40% death drop targeting 2020 liquidity levels near $0.70 looks like the ideal target that bears aim for.
Invalidation of the bearish outlook is possible if the bulls take the liquidity above the recently breached 21-day simple moving average at $1.54. A hurdle of this level could induce an additional buyers frenzy targeting the monthly high at $2.05. Sushi Swap price would rise by 70% if the bears were to succeed.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
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