Sushi is testing the upper end of the downtrend channel for the long term trend, which includes a potential breakout to Q3.
If prices can defeat a level of resistance defined at $0.87 then a rally to $13.40 is possible.
Strictly speaking, early bullish divergence appears in comparisons with BTC and ETH but broader market terms will dictate the trend’s sustainability.
Now, according to the most recent market actions, the native token SUSHI of SushiSwap is putting pressure on an important weekly resistance zone. Analysts observing the SUSHI/USDT pair report that the asset is trying to exit a prolonged descending channel that has confined its price movement for over two years. This potential shift in trend is being closely watched by market participants who are weighing the implications of a sustained breakout for long-term positioning.
https://twitter.com/clifton_ideas/status/1921457066700337514 SUSHI Tests Resistance After Breaking 3.3% Higher, Eyes Key Reversal
During the early 2021 to date period, SUSHI has been stuck in a downtrend on the weekly chart, which progressive lower highs and lower lows have characterised. However, the current dynamics of the market give signal for an escalating push upwards with the possibility of token going above the ceiling of the extensive trend channel. If this attempt is to persist in the next few trading sessions, it could be viewed as a potential key reversal in SUSHI’s technical pattern.
Source: CoinMarketCap
The token’s present market price is $0.8248, which represents a 4.76% increase over the last 24 hours. We are now trying to get close to the key resistance level of the price, which is now around $0.87. Earlier pullbacks had not been destroyed as the price found a support at the level of $0.7818. A daily close above the channel could be seen as a powerful suggestion that bullish movements will be sustained.
Potential Upside Targets
Technical indicators forecast the positive target around the $13.40 level if momentum sustains after the breakout. This potential target is taken from analysing prior price movements, with the help of standard technical analysis tools such as the measured move technique. Such extended downward leaps are known to precede rapid bursts of price in either direction once the underlying pressure is released in a breakout. Nonetheless, professionals emphasize that this should not be considered a trading target until confirmation is obtained.
Broader Context and Market Implications
SUSHI is trying to reverse the direction of its market at a point in time that crypto recovery is spreading throughout the broader market which is becoming more favourable. However, technical breakouts tend to lead to more positivity yet market sentiment, macroeconomic signals and regulatory changes can still shift momentum and destroy identifiable patterns.
The performance of SUSHI continues to remain consistent relative to Bitcoin and Ethereum, with no major variations. In comparison to Bitcoin and Ethereum, SUSHI has appreciated in value by 2.5% and 0.3%, both respectively, which is not bad in upward movement terms by the most critical digital assets.
Final Thoughts
SUSHI is in a very delicate position regarding its technical position at this point in time. Multiple failed attempts to exit the descending weekly channel signal growing demand; however, a clear breakout above key resistance levels is crucial to verify enduring bullish expectations. Caution from investment managers is required, and constant vigilance of markets should be maintained as this unfolding pattern continues for the next few weeks.
