February 1, 2023

  • SushiSwap’s stochastic was in an oversold position
  • While interest in whales and developmental activity increased, there were other statistics did not support a price increase

Sushi swap [SUSHI] has been troubling investors for quite some time thanks to the negative price action. CoinMarketCap data showed that SUSHI recorded 12% negative weekly losses and it was trade at $1.18 at the time of writing, with a market cap of over $150 million.

However, investors may hear some good news soon. This can be said because some statistics and market indicators revealed the possibility of a trend reversal.

Read Sushi Swaps [SUSHI] Price prediction 2023-2024

Is a trend reversal inevitable?

from CryptoQuant data revealed that SUSHIThe stochastic was in an oversold position. This can be considered a huge bullish indicator.

SUSHI also gained interest from the whales as it was one of the top 10 purchased tokens among the top 100 Ethereum whales. This too was an optimistic development, as it reflected whales’ confidence in the token.

In addition, according to CryptoMiso’s graphic, SUSHI was ranked second in most active cryptos by GitHub pledges in the past three months. This showed that developers are putting their best foot forward to further improve the network.

Santiment’s data offered further hope as several on-chain metrics supported a trend reversal. For example, SUSHI’s Market Value to Realized Value (MVRV) ratio registered a slight increase. This looked promising for the token.

Further, SUSHIThe company’s development activity also experienced a strong increase. The token also continued to be quite popular in the crypto industry as its social volume surged last week.

Source: Sentiment

Should SUSHI investors be concerned?

While the above stats looked optimistic, a few indicated that the price drop could continue for a while. SUSHI’s foreign exchange reserve increased, which was a bearish signal as it indicated higher selling pressure.

Not only that, but the inflow of the token registered a spike. SUSHI‘s network growth also declined in the past seven days. This increases the likelihood of a sustained downtrend.

Source: Sentiment

Interestingly enough, SUSHI’s daily chart suggested that the bears still had the upper hand in the market. The Exponential Moving Average (EMA) ribbon showed a bearish crossover. In addition, the Money Flow Index (MFI) dipped further below neutral, which could be worrying for investors.

Source: TradingView

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