SushiSwap (SUSHI) is trading just above a very important horizontal support area. Therefore, the price needs to hold above this support for the bullish structure to remain intact.
Critical support zone
SushiSwap has been falling along with a descending resistance level since May 18, after hitting a high of $ 22.50. This line has declined the award several times, the most recent being on December 30th.
That rejection is still going on, dropping it to a low of just $ 6.30 on Jan 8th.
In order for the trend to be considered bullish, SUSHI needs to keep the price above the $ 6.40 zone. This is a very important zone that has been acting as a support since May 2021.
Although SushiSwap fell to this level in early December (red circle), the price has moved above it again and is possibly in the process of confirming it as support.
Daily SUSHI / USDT Chart | Source: TradingView
The technical indicators of the daily timeframe are showing mixed signals.
The MACD, which is made up of short-term and long-term moving averages (MAs), is currently at 0. This means that the short-term MA is moving at the same speed as the long-term MA.
Likewise, the RSI is right at the 50 line. The RSI is a momentum indicator and movements above / below this line can be viewed as a sign of an upward / downward trend.
Daily SushiSwap / USDT Chart | Source: TradingView
The 2-hour chart is a little more bullish as both the RSI and MACD create significant bullish divergences. This is a signal that usually precedes upward movements.
The main resistance is at $ 8.75. A break above this level also confirms a break above the long-term descending resistance line. This will confirm that the long-term trend is bullish as well.
SUSHI / USDT 2-hour chart | Source: TradingView
Trader @TheTradingHubb tweeted a SUSHI chart saying there is likely to be a new upside momentum.
The source: Twitter
SUSHI is currently trading just above the fib retracement support at $ 0.618 at $ 6.67 and has lower support at $ 5.70 (Fib 0.786). For the bullish scenario to continue, SushiSwap needs to find support near the current level and reach a higher low. This can lead to the continuation of the upward movement.
A break below the December 2021 low (red line) would invalidate this wave count and indicate that SUSHI may be trending down.
If it follows long-term wave counting, SushiSwap could still hit new all-time highs.
SUSHI / USDT 4 hour chart | Source: TradingView
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