In this new Wednesday crypto nugget where we break down the price of a cryptocurrencywe will focus on native cryptocurrency of the Sushiswap protocolthe SUSHI. After recording a nice rise in late 2020 and early 2021, the price has continued to lose value, gradually revisiting levels it hasn’t seen for more than two years. Today you will have the opportunity to find out the key levels of the asset and the bias to be had for the next few weeks. Without further ado, let’s jump right into TradingView.
SUSHI is still stuck in its technical range
First, onweekly scaleyou can see the long evolution of SUSHI within a technical range. Since June, the asset has traded between a lower bound of 1 dollar and an upper limit a $1.55. After deviating upwards in October, which allowed it to find the high wick of late May, the asset deviated downwards during the month of December.
Now, the asset is back at the top of the range and is currently heading towards the upper limit. The main issue is to determine as quickly as possible which of the two limits will yield to price pressure as a breakout will allow the price to start a new trend on a weekly scale.
For the time being, on this unit of time, the SUSHI is below its previous peak. If it fails to get rid of it and if it breaks the lower bound by making a low lower than the December deviation, the price will trigger a new bearish momentum. In this context, a return to $0.60 (low in October 2020) should be considered.
SUHI’s situation is interesting but nothing is decided yet
Ondaily scale, we have a more detailed view of the swing that the price has undergone in recent months. What we can see is that the area located at $1.31/$1.34 works as a hub. On many, many occasions, the price has either rejected or had the opportunity to bounce. Currently, SUSHI is in difficulty and evolves under this pivot fighting with the MA100, a dynamic technical level. To confirm a return to the upper limit which is at the confluence of the 200 EMA, SUSHI will need to clear the confluence of the pivot zone and the MA100 with a daily close above $1.35.
However, if SUSHI fails to clear these resistances and is rejected to the downside, what are the levels to watch? We can track the price reaction on the EMA trio which gives us a good approach on the price trend which, on a daily scale, is bullish. If the price can hold, it is entirely possible to have another attempt to exit the pivot zone.
However, if the SUSHI opt for a reversal of the current trend, two levels could make the price react. One technical level (not represented on the chart) at $1.08/1.09 and then support which is the lower end of the range. The pivot zone is the key level to monitor on a daily basis and unfortunately, as long as the price moves below this zone, it is harder to hope for a continuation of the upside despite the strength of the momentum.
Here we are at the end of this technical analysis of SUSHI the native cryptocurrency of Sushi trading protocol, an asset that is in a daily uptrend despite being in a weekly range for several months. Still below its pivot zone, this is the level to watch as below, the preferred bias is bearish. However, this bias could change if SUSHI can overcome it. To do this, bullish momentum must be preserved on smaller timeframes such as H4 and H1. Trying to go long in a technical setup isn’t the best thing to do. It is better to wait for other signals or, in case you are trying to enter the asset with a short position, you will have to wait for the first signs of reversal with a loss of the trend, first, in H4.
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