SushiSwap (SUSHI) has broken above the short-term descending resistance line, failing to form a bullish structure or sustain its upward movement.
SUSHI has been falling since reaching an all-time high of $23.43 in March 2021. The downtrend has been contained within a falling wedge, which is considered a bullish pattern.
So far, the price has reached a low of $0.92. It is currently trading at the confluence of support and resistance, so a decisive move is likely.
Moreover, the price has reached the horizontal support area of $0.90, which is in line with the current all-time low. Measured from its all-time high, prices are down 95%.
The weekly RSI is at an all-time low of 30 but has yet to reach oversold territory.
SUSHI fails to sustain breakout
The daily chart offers a more bullish outlook, as the price has broken above the descending resistance line. However, it failed to sustain its upward movement and returned to the resistance line again on June 15, possibly validating it as support (green icon).
After that, the daily RSI produced a bullish divergence (green line). As long as the bullish divergence from the trendline remains intact, the possibility of a continuation to the upside remains valid.
When measuring the entire downtrend, the nearest resistance area will be at $2.45, or the 0.382 Fib Retracement resistance.
Crypto trader @Thetradinghubb tweeted a chart of SUSHI, saying the price could go all the way up to $1.90.
Since the tweet, the price did break out of the channel but failed to sustain its upward movement. It is currently back at the $1 horizontal support area.
A break below the wave B low (red line) at $0.92 would invalidate this particular count. This implies a break below the new low of $0.86 is expected.
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