SushiSwap is on fire as on-chain metrics stay strongly bullish

  • SushiSwap flies the bullish flag high above the cryptocurrency horizon after trading new record highs.
  • Key on-chain metrics support SUSHI’s uptrend with 100% of addresses in profitability.
  • SushiSwap may extend the rally to $20 if the price closes the day above the channel’s middle boundary.
  • A correction may come into play, especially now that the RSI is in the overbought area.

SushiSwap has managed to rise from a ridiculed token to a darling in the decentralized finance (DeFi) sector and the cryptocurrency market at large. The token is trading at new all-time highs after entering a price discovery mode since November 4. SushiSwap has surged by nearly 2,900% to exchange hands at $15.5.

SushiSwap ‘engines’ fueled by on-chain metrics

SushiSwap’s number of large transactions is up 325% year-to-date (YTD), according to the data provided by IntoTheBlock (ITB). This metric tracks transactions of more than $100,000 on the protocol.

A higher figure or an increase reflects institutional buyers or whales taking a fundamental interest in the project. It also suggests that the project is receiving positive sentiment from the investors and, therefore, points to a possible increase in token value.

SushiSwap number of large transactions

SushiSwap number of large transactions

Similarly, we can see a consistent rise in the volume of perpetual swaps across exchanges. ITB shows that this volume stands at $3.9 billion at the time of writing, a figure that is likely to keep rising. It is worth mentioning that the perpetual swap contracts or derivative volume consist of all the dollar amount traded in the last 24 hours across all the top exchanges.

SushiSwap perpetual volume

SushiSwap perpetual volume

According to ITB’s Global In/Out of the Money, 100% of SushiSwap addresses are currently profitable. This is reflected by the model below, showing that SUSHI is now in price discovery, and no clear barrier exists to derail the uptrend.

SushiSwap Global In/Out of the MoneySushiSwap Global In/Out of the Money

Consequently, SushiSwap’s correlation with Bitcoin has significantly diminished in 2021. Currently, the correlation between these two assets holds at 0.2. In other words, SUSHI can chart its path independent of Bitcoin. Therefore, a fall in Bitcoin price may not necessarily affect SushiSwap and vice versa.

SUSHI correlation with Bitcoin

SUSHI correlation with Bitcoin

SushiSwap is technically ready to hit $20

SUSHI has settled above $15 after the majestic price action. The gains have been confined in an ascending parallel channel since January 25. In several instances, the price has broken above the channel’s middle boundary. However, the upper channel’s edge has remained intact and unshaken.

At the time of writing, SushiSwap is attempting to rise above the middle boundary resistance. Trading above this zone may encourage more buyers to join the market as bulls increase their positions. A subsequent increase in trading volume may push SushiSwap to highs above the channel and perhaps place the token on a trajectory toward $20.

SUSHI correlation with Bitcoin

SUSHI 4-hour chart

Looking at the other side of the picture

Despite technical and on-chain pictures looking bullish for SushiSwap, a bearish impulse may occur due to the overbought conditions seen with the Relative Strength Index.

Moreover, if the price fails to settle above the middle layer of the ascending channel, overhead pressure will put the lower edge under immense stress. In the event of a continued correction, the 50 Simple Moving Average at $10.5, the 100 SMA currently at $8.8 and the 200 SMA at $6.75 will come in handy, providing support.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin contemplates breakout, while altcoins promptly follow

Bitcoin price rose from the range low to nearly tagging the swing high this week. However, the impulsive move reversed and is now heading toward the midway point. Ethereum and Ripple are following in BTC’s footsteps and are expected to head lower.

More Bitcoin News

This DeFi coin went from $65 to $0 in just a few hours

The fallout of TITAN token tracks back to Iron Finance and its multi-chain, partially collateralized stablecoin – IRON. While the mishap cost investors millions of dollars, the team has yet to comment on what transpired.

More Cryptocurrencies News

Chiliz looks to retrace 12% after recent run-up

Chiliz price saw two massive rallies over the past week due to the European Cup. However, the current upswing appears to have hit a local top and shows signs of exhaustion and potential reversal.

More Chiliz News

Shiba Inu Coinbase listing predicts higher prices, but not yet

Shiba Inu price had been locked in a frustrating consolidation before the brief sweep below the May 19 low on June 11, clearing the weak holders and pockets of anxiety. 

More Shiba Inu News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast