SushiSwap Hits Multi-Week High on High Profile Synergies; What’s Next?
SushiSwap’s governance token SUSHI continued its rally upward on Wednesday as its price per unit breached the $2-resistance level.
The SUSHI/USD exchange rate rose 13.15 percent ahead of the New York opening bell, trading at $2.18. The latest gains came as a part of a broader upside move that brought SUSHI’s week-to-date returns up by 61 percent and its quarter profits up by 74 percent.
Meanwhile, the reason traders boarded the SUSHI uptrend this week is a flurry of SushiSwap’s partnerships with high-profile decentralized finance projects. A decentralized exchange itself, it formed synergies with yield aggregator Yearn Finance, smart contract-based job marketplace KP3R, and DeFi services platform DeriSwap.
All the SushiSwap’s partnership platforms have one founder: Andre Cronje.
The celebrated developer stated in a blog post on Tuesday that Yearn Finance would “participate in SushiSwap governance and add to its treasury some SUSHI.” He further promised grants for developers who would build tools for the decentralized exchange.
Josh Rager, a cryptocurrency analyst, said the partnerships allowed traders to raise their bids for SUSHI tokens. As a result, the price rose exponentially in the previous weeks in hopes that SushiSwap would grow into a full-fledged DeFi ecosystem.
“I would love to see SUSHI price eventually hit the upper $4’s target,” said Mr. Rager.
SUSHI Technical Setup
Technically, SUSHI showed signs of either correcting lower or consolidating sideways as its momentum oscillator alerts about its “overbought” status.
SushiSwap breaks above crucial Fib resistance level. Source: SUSHIUSD on TradingView.com
But despite a short-term correction woe, SUSHI looks stronger above $2, a Fibonacci retracement level the token broke on Wednesday. A push above the level now allows traders to open a slightly risky long position towards $2.9-3. SushiSwap’s fundamentals, as discussed above, support the upside call.
Meanwhile, should profit-taking sentiment clouds the market, SUSHI risks falling back inside its previous Ascending Channel range, followed by a retest of the area’s lower trendline. The level also coincides with the 20-day exponential moving average wave (green).
If the sell-off continues, then the price may fall to as low as the 50-day simple moving average curve (red).