- SushiSwap has broken out of an ascending triangle pattern and is ready for a spike to $27.
- The MACD indicator has confirmed the upswing following the cross above the signal line.
- SUSHI will abandon the massive rally if the price stalls under $22, putting pressure on the x-axis.
SushiSwap is trading above $20 after breaking out of a key technical pattern. The period of consolidation in the last couple of weeks has been instrumental to the ongoing upswing. Thus, bulls seem energized for another run-up to new all-time highs.
SushiSwap begins its 36% rally to new record highs
The cryptocurrency market is relatively in the red at the time of writing. SushiSwap is among the cryptoassets recording double-digit gains. The 4-hour chart brings to light an ascending triangle pattern, giving way to the ongoing bullish momentum.
An ascending triangle is a bullish continuation pattern that generally forms within a generally up-trending market. It is formed by two trendlines where one links a series of higher lows and connects the relatively equal peaks. The pattern illustrates a period of consolidation before the uptrend continues.
It is worth mentioning that triangle patterns have exact targets following breakouts at the x-axis and are measure from the highest to lowest points of the pattern. The upswing tends to be rapid and must be accurately timed. For instance, SushiSwap is looking forward to a 36% upswing to a new record high.
SUSHI/USD 4-hour chart
The uptrend has been validated by the Moving Average Convergence (MACD) cross above the signal line. Note that the MACD sends out a bullish signal crossing above the signal line, thereby validating the uptrend.
Looking at the other side of the fence
SushiSwap has hit a barrier at $22 after breaking out of an ascending triangle pattern. Price action above past this zone is key to continuing with the bullish leg toward $27. However, a correction may come into the picture. Support at the x-axis must remain intact; otherwise, broken losses may extend to the 50 Simple Moving Average on the 4-hour chart.
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.