DeFi is bleeding, and so is Sushiswap.
The token’s fortunes have been topsy-turvy in the last two months or so. After the Chef was accused of exit-scamming and dumping on holders, the protocol has not yet quite snapped back to previous highs.
According to coin trackers, the token is down 24 percent on the last day alone. Losses are around a ballpark 15 percent versus BTC and ETH, respectively.
Although losses in the last week are low, today’s sliding could shape prices the token’s trajectory in the medium term.
SUSHI Price Review
Admittedly, participation is optimum.
While there are expectations for recovery from spot levels, a dip following a strong performance in the first half of November was on the cards. For now, how SUSHI performs is largely dependent on the reaction at spot levels.
Noticeably, prices are also trending below the middle BB. Even though there are attempts to prop price in the lower time frames explaining the long-lower wick, it is events from the fundamental front that will either accelerate recovery or pour cold water on bulls’ prospects.
From the daily chart, $0.70—resistance of H2 October– and $1.82—November 2020 highs, are worthy price levels traders ought to keep an eye on.
Sushiswap (SUSHI) Market Movers
Initially, the protocol tapped liquidity flows from Uniswap following the end of UNI’s initial distribution.
Combined with a revamped user interface and high yields, Sushiswap’s total value locked (TVL) soared to over $1 billion.
— Andrew Køng (@Rewkang) November 19, 2020
Within that period, on Nov 21, the amount of wBTC held in Uniswap was lower than those in Sushiswap:
Sushi has flipped Uniswap on WBTC holdings pic.twitter.com/rVzzHD13IG
— Alex Svanevik 🧭 (@ASvanevik) November 21, 2020
However, the slump is back. In the last few days, Sushiswap’s TVL has been dropping.
At the time of writing (Nov 26), the TVL is down nine percent to $554 million.
Overly, it reflects the contraction in the total number of assets under management in various DeFi dApps. In four days, DeFi’s TVL lost $1 billion after spiking above $14 billion on Nov 22.
Supportive news that may spur demand for SUSHI price and slow down bears their high-APR menus, better than competing protocols.
Wow, is nobody aware that $SUSHI is paying out about $19M annualized (based on last 7 days) in actual revenue from the protocol to holders?
And $99M in revenue to LPs. (On top of SUSHI rewards)
— BoringCrypto (@Boring_Crypto) November 24, 2020
The beginning of Ampleforth’s liquidity mining program for the AMPL/ETH pool:
Announcing the #AMPL Pescadero V1 Geyser! 💦💦
Check it out: https://t.co/YfcLJuWCTa
— Ampleforth #AMPL (@AmpleforthOrg) November 24, 2020
SUSHI Price Prediction
The SUSHI price is down 24 percent on the last day.
From the daily chart, bears are in the driving seat. In five days, gains made on Nov 19 have been reversed. However, from an Effort-versus-Result and volume analysis, bulls may have a chance.
It took five days for bears to reverse Nov 19 gains. Amid the draw-down, volumes were low. Today, there are hints of support in lower time frames as a long lower wick is forming from the middle BB—a flexible support line.
While a bull bar in subsequent days and a double bar bullish formation will signal the entry of buyers, confirmation of today’s bears will deflate bulls’ attempts.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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