Sushi's rally may be put on hold, unless this level is borken

SUSHI has experienced substantial gains recently amid the massive recovery across the cryptocurrency market. The token's price gained over 40% on a week-to-week basis, moving from $1.88 in November to $2.76 at the time of writing. 

SushiSwap is the 6th largest DeFi protocol with the total value locked worth nearly $1.2 billion. The project became one of the main beneficiaries of Uniswap's expired liquidity mining program as the majority of yield farmers migrated to SushiSwap.

SUSHI's TVL

SUSHI faces strong resistance

While SUSHI is still moving within a clear bullish trend, it is worth mentioning that this token approaches a vital resistance area that may slow down the further recovery. IntoTheBlock's "In/Out of the Money Around Price" model shows that nearly 700 addresses had previously purchased over 15.6 million SUSHI on approach to $2.8.

Once this supply is absorbed, the recovery may be extended at least to $3.0. However, as FXStreet previously reported, SUSHI's ultimate bullish target is set at $4.3.

SUSHI In/Out of the Money Around Price

On the other hand, strong support comes at $2.3, with 440 addresses holding over 44 million SUSHI tokens. This barrier has the potential to stop the sell-off and create a new bullish wave that will take the price above the said resistance of $2.8.

Otherwise, the downside momentum may gain traction push SUSHI to a price target of $1 in the long-term.