SushiSwap (SUSHI) has been falling steadily over the past few weeks, is it time for a trend reversal?

SushiSwap (SUSHI) has failed to break above the long-term resistance area and is struggling to find support.

SushiSwap Là Gì? Toàn Tập Về Tiền Điện Tử SUSHI

SUSHI has been bearish since March 13, along with a descending resistance level when it hit an all-time high of $ 23.43. So far it has been rejected three times by this resistance line (red symbols), most recently on 11.

After the rejection, SUSHI fell below the $ 9.20 zone that has acted as support since early August, with the next support at $ 6.50.

Technical indicators on the daily timeframe support the continuation of the downtrend towards support.

The MACD, formed by the short and long-term moving averages (MA), is in negative territory and is decreasing. This means that the short term MA is slower than the long term MA and is a bearish signal.

Likewise, the RSI, which is a momentum indicator, is close to 30. Values ​​below 50 are considered bearish and values ​​below 30 indicate that the price has been falling for a very long time.

Hence, technical signals from the daily timeframe suggest a decline on SUSHI to $ 6.50.

Sushi prison

Daily SUSHI / USDT Chart | Source: TradingView

Short term movement

The shorter 4 hour chart is pointing up.

First, it shows that SUSHI is trading within a descending parallel channel. Such channels often contain corrective movements. This means that they often lead to breakouts as downtrends are considered corrections.

Dự đoán giá SUSHI Coin | SUSHI Coin có phải là một khoản đầu tư tốt hay  không? | Currency.com

In addition, both the RSI and the MACD create bullish divergences. This is a signal that often precedes bullish reversals.

However, the resistance level of the channel coincides with the previous support area at $ 9.20. It is now expected that this area will act as a strong resistance area.

Hence, the trend cannot be considered bullish until the price breaks above it.

Sushi prison

SUSHI / USDT 4 hour chart | Source: TradingView

Counting SUSHI waves

Trader @TheTradinghubb sketched the SUSHI chart and said the correction is coming to an end.

Sushi prison

The source: Twitter

An upward move could have started on June 2nd (highlighted). In this capacity, the current decline will only be a correction.

However, for this to remain valid, SUSHI needs to reverse the trend near the current level. The $ 7.50- $ 8.20 zone is the 0.786-0.854 support zone. Hence, it is the final level of fib retracement support.

A decline below the June 22nd low of $ 5.96 (red line) invalidates that particular wave count.

Sushi prison

Daily SUSHI / USDT Chart | Source: TradingView

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SushiSwap (SUSHI) has been falling steadily over the past few weeks, is it time for a trend reversal?

SushiSwap (SUSHI) has failed to break above the long-term resistance area and is struggling to find support.

SushiSwap Là Gì? Toàn Tập Về Tiền Điện Tử SUSHI

SUSHI has been bearish since March 13, along with a descending resistance level when it hit an all-time high of $ 23.43. So far it has been rejected three times by this resistance line (red symbols), most recently on 11.

After the rejection, SUSHI fell below the $ 9.20 zone that has acted as support since early August, with the next support at $ 6.50.

Technical indicators on the daily timeframe support the continuation of the downtrend towards support.

The MACD, formed by the short and long-term moving averages (MA), is in negative territory and is decreasing. This means that the short term MA is slower than the long term MA and is a bearish signal.

Likewise, the RSI, which is a momentum indicator, is close to 30. Values ​​below 50 are considered bearish and values ​​below 30 indicate that the price has been falling for a very long time.

Hence, technical signals from the daily timeframe suggest a decline on SUSHI to $ 6.50.

Sushi prison

Daily SUSHI / USDT Chart | Source: TradingView

Short term movement

The shorter 4 hour chart is pointing up.

First, it shows that SUSHI is trading within a descending parallel channel. Such channels often contain corrective movements. This means that they often lead to breakouts as downtrends are considered corrections.

Dự đoán giá SUSHI Coin | SUSHI Coin có phải là một khoản đầu tư tốt hay  không? | Currency.com

In addition, both the RSI and the MACD create bullish divergences. This is a signal that often precedes bullish reversals.

However, the resistance level of the channel coincides with the previous support area at $ 9.20. It is now expected that this area will act as a strong resistance area.

Hence, the trend cannot be considered bullish until the price breaks above it.

Sushi prison

SUSHI / USDT 4 hour chart | Source: TradingView

Counting SUSHI waves

Trader @TheTradinghubb sketched the SUSHI chart and said the correction is coming to an end.

Sushi prison

The source: Twitter

An upward move could have started on June 2nd (highlighted). In this capacity, the current decline will only be a correction.

However, for this to remain valid, SUSHI needs to reverse the trend near the current level. The $ 7.50- $ 8.20 zone is the 0.786-0.854 support zone. Hence, it is the final level of fib retracement support.

A decline below the June 22nd low of $ 5.96 (red line) invalidates that particular wave count.

Sushi prison

Daily SUSHI / USDT Chart | Source: TradingView

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

SN_Nour

According to Beincrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

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