SushiSwap price looks unstoppable as on-chain metrics call for bigger gains

SUSHI has enjoyed substantial gains recently amid the massive recovery across the DeFi sector. The token's price gained 150% in less than two weeks, moving from $0.5 in November to $1.5 on November 16. At the time of writing, SUSHI is changing hands at $1.38. 

As Uniswap's liquidity mining program is set to expire later today, SUSHI is regarded as one of the next darlings for yield farmers. In the latest 24 hours, the total value locked in the protocol increased by over 60% to $585 million. It is currently the 9th largest DeFi protocol by TVL, according to DeFi Pulse.

Whales bet on SUSHI success

SUSHI whales continue accumulating tokens. Since the beginning of the month, the number of addresses holding from 100,000 to 1,000,000 SUSHIs more than doubled, signalling that large network supporters bet on the further price increase. A significant spike in the number of whales addresses may translate into considerable buying pressure.

SUSHI's Holders'distribution

Speculators get ready to lock profit

While the price momentum remains bullish, several on-chain metrics imply that the token may be vulnerable to the potentially sharp downside correction.

According to the data provided by the behavioural analytics company Santiment, the number of daily deposits to the exchanges jumped to 198 on November 15, which is the highest level in the recent two months. This momentum anticipates growing pressure on the sell-side. Notably, the previous spike in daily deposits preceded a SUSHI's price collapse. 

SHUSHI's deposits to the exchanges

The exchange inflow data confirms this theory. As the chart below shows, the spike was registered on November 13; however, the inflows also stayed elevated in the following days. 

SUSHI price forecast 

It is worth mentioning that this token sits on top of a vital support area, based on IntoTheBlock's "In/Out of the Money Around Price" model. The IOMAP cohorts show that nearly 900 addresses had previously purchased almost 25 million SUSHI between $1.28 and $1.37. 

Such an insignificant supply wall could absorb the selling pressure and create a strong buying impulse. In this case, the price may start skyrocketing as there are no significant resistance areas spotted above the current price up until $1.58 

SUSHI In/Out of the Money Around Price

Given the unpredictability of the cryptocurrency market, the bearish outlook cannot be disregarded. 

A sudden spike in the selling pressure behind the DeFi token to push it below the $1.28 might jeopardize the bullish scenario. Under such circumstances, SUSHI's price could plummet below $1.2.