SUSHI Price Analysis as On Chain Trends Shows Potential Correction Amidst Growing Sell Off Concerns
The price of Sushiswap’s native token, SUSHI, has experienced a rollercoaster ride in recent weeks, reaching $1.15 on November 2 before retracing below $0.92 just a week later. The current on-chain data trends are now scrutinizing trader behavior as SUSHI hovers between $1 and $0.90, prompting questions about profit-taking and the resilience of HODLers in anticipation of future gains.
Investor Movement Indicates Potential Sell-Off:
Despite a positive trajectory for SUSHI in the past month, marked by a significant partnership and positive price action, recent on-chain movements suggest a potential shift in investor sentiment. On November 16 alone, SUSHI holders executed 226 Exchange Deposit transactions, indicating a move of tokens from cold storage to crypto exchange-hosted wallets. This activity often signals a readiness to exploit short-term profit opportunities, historically leading to price corrections.
Aggregate Order Books Reflect Bearish Momentum:
Analysis of the aggregate data from order books on various crypto exchanges adds weight to the potential sell-off concerns. Currently, there are 13.7 million SUSHI tokens listed for sale, surpassing the 10.8 million SUSHI buy orders. This bearish dominance in the order books implies a risk of downward price pressure.
Potential Price Correction Below $0.90:
With recent price gains exceeding 100% over the past 30 days, on-chain data readings hint at investor skepticism regarding the sustainability of the rally. The combination of rapid Exchange Deposits and an increasing number of sell orders puts SUSHI at risk of a forthcoming price retracement.
The Global In/Out of the Money data adds nuance to this forecast, indicating a significant buy-wall at $1.00 that could serve as initial support. However, if investor confidence falters, panic selling may trigger a larger retracement below $0.90.
Price Prediction and Possible Scenarios:
Analysts suggest that, if investor confidence prevails, SUSHI could rebound from the $1.00 range, potentially resuming its upward trajectory. On the flip side, a sustained lack of conviction among investors could lead to a more substantial retracement below $0.90.
Bulls aiming for a rally toward $2 may encounter resistance at $1.35, where a sell-wall is anticipated. Breaking through this resistance could signal a renewed bullish phase for SUSHI.
As the crypto market remains dynamic, this analysis serves as a guide and not financial advice. Investors are advised to conduct thorough research and consult professionals before making any financial decisions. The evolving situation in the crypto space requires vigilance and adaptability to changing market conditions.
