SushiSwap Price Forecast: SUSHI consolidating before a breakout eyeing $3.50

  • SushiSwap remains among the top ten DeFi projects by market capitalization.
  • As the waves in the community calm down, new leadership could set up SUSHI a fresh start.
  • SushiSwap is consolidating within the Bollinger Bands amid a potential breakout to $3.50.

SushiSwap is trying to find stability after a gruesome start at the beginning of September. The drop from highs of $46 to lows of $1.13 happened amid the founder's drama, Chef Nomi cashing out up to $13 million in ETH. SUSHI recovered slightly from the dip, but the price has been capped under $3.50. On the downside, $2.00 has come up as a formidable support area. However, price movements continue to be limited under the descending trendline, as seen in the 4-hour timeframe.

SUSHI/USD 4-hour chart

SUSHI/USD price chart by Tradingview

The embattled DeFi token is currently trading at $2.25. Its immediate upside is capped under the 21 Moving Average (SMA). Moreover, the price is trading within a descending triangle. If buyers hold the price above the triangle support, there is a possibility for a bounce upwards.

 Gains above the 21 MA would bring the price closer to a breakout above the triangle resistance and the 50 MA. More resistance is anticipated at $3.00 and $3.50, respectively. Meanwhile, the Relative Strength Index (RSI) highlights the probability of consolidation taking precedence, especially with the overall low volatility.

SUSHI/USD 1-hour chart

SUSHI/USD price chart

A closer look at the hourly range, the consolidation, comes vividly into the picture, as mentioned earlier. However, the Bollinger Bands constriction is heading into a squeeze that would eventually result in a breakout. If the triangle breakout materializes, there is potential for gains above the resistance highlighted at $3.00 and $3.50.

Is SushiSwap undervalued?

According to Santiment, a renowned on-chain analytics platform, SushiSwap is among the top ten DeFi projects as far as market capitalization is concerned. Data on the platform shows that SUSHI has a $253 million market cap and is the ninth-largest DeFi project. Despite having a relatively high market cap, SushiSwap price is among the lowest, raising questions about whether the token is significantly undervalued.

DEFi top ten projects

Santiment writes on Medium that “constant sell pressure by liquidity providers farming SUSHI and dumping them. Which is likely to continue until high emission rate settles down.” It is also not clear if liquidity providers will decide to hold onto the project when the current incentives are either lowered removed. Besides, vampire attacks on the project could also continue. Such occurrences could also harm the future of the project.

In the meantime, Chef Nomi is said to have transferred the protocol’s keys to the new leader, SBF_Alameda, who promised to forge a new direction for SushiSwap. The Ethereum that was cashed by Chef Nomi is reported to be in the project’s dev fund wallet. According to Santiment, SBF_Alameda rushed to take control mainly because “he has a vested interest in the success of Sushi or rather, in ensuring that the $1.2B liquidity ends up his ecosystem (Serum, Solona, FTX). Also, he has skin in the game to pursue that, seeing how he's one of SUSHI's large holders.”

There has been significant progress after SBF_Alameda took control, including the successful migration of SUSHI. Moreover, new multi-sig signers have been brought to the table, which means that the new leader will have to be accountable.

SushiSwap holder distribution

SUSHI holder distribution

Looking at the holder distribution, whales with tokens between 1,000,000 and 10,000,000 are still stocking up, perhaps anticipating the price rallying again. The volume coming from the large holders in conjunction with the discussed technical breakout would most likely catapult SUSHI to a higher level. As long as the price starts to improve, smaller holders of the token will choose to stay to recover from the dip.

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

Crypto bulls unfazed by flash crash

Bitcoin price action initially shakes off strong selling pressure, finds buyers at support, then resumes some selling pressure. Ethereum price action mixed post-all-time high rejection. XRP price awaits its own bullish breakout and an opportunity to outperform its peers.

More Cryptocurrencies News

MATIC price ready for new all-time highs as $188 million flow into Polygon

The total number of transactions on Polygon network dropped nearly 15% due to a rise in transaction fees over the past week. This hasn’t negatively impacted the network as the number of unique daily active users remained stable. 

More MATIC News

AVAX price offers a bullish opportunity before Avalanche hits new all-time highs

Avalanche (AVAX) price has seen a bullish outbreak on Thursday after it broke out above – and then retested – the red descending trend line at $61.62. With even more buyers and bulls coming in, expect a run towards new all-time highs at $81.

More AVAX News

XLM price building base for bullish breakout

Stellar bulls are in the last phase of completing a bullish triangle. As XLM price is getting squeezed against the base ($0.40), expect a quick breakout of 12%. After taking a breather, expect another 10% of profits to follow. 

More Stellar 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