SushiSwap (SUSHI) Declines beneath June Lows amid Extended Downswing
- SushiSwap (SUSHI) trades within a descending wedge.
- The altcoin has plunged below the horizontal support level at $6.50.
- SushiSwap has to reclaim the horizontal level to avoid long-term bearish trends.
According to the weekly chart, SUSHI has plunged under the value area of $6.50. The alternative coin has maintained its price moves above this level since September. Though SushiSwap hovers beyond the 0.786 Fibonacci retracement support of $5.30, the level at $6.5 is vital. That is why breaching the level meant bearishness for SUSHI.
For now, the altcoin seems poised for further declines. @ByzGeneral, a crypto trader, outlined a SushiSwap price chart, suggesting that the coin can witness extended downswings. If the crypto fails to regain the $6.50 mark, it will have its next downward support at $1.40.
Descending Wedge
The daily price chart indicates that SushiSwap has declined since 18 May, after touching an ATH of $22.54. Meanwhile, the downswing resulted in a $4.33 low on 4 December. However, the digital coin bounced after that, exploring highs gradually.
The bounce saw SUSHI validating descending support that existed since late May. As SushiSwap also followed a descending resistance line, it hovered within a descending wedge, a bullish pattern.
Nevertheless, technical indicators remain bearish. The Moving Average Convergence Divergence increases while negative. Keep in mind that formed by a long- and short-term MA form the MACD. That shows that the long-term Moving Average moves faster than the near-term one. Moreover, MACD’s histogram formed three consecutive high momentum bars, signaling that Moving Average moves quicker.
The Relative Strength Index, a momentum indicator, stays under the 50-mark. That also confirms a bearish trend. Therefore, SUSHI’s daily chart presents a bearish outlook.
SUSHI’s Near-Term Movement
The near-term 2hr chart indicates that SushiSwap trades within an ascending channel. The alt has maintained such actions since 4 December low. Keep in mind that an ascending parallel channel means bearish trends. That means investors can wait for the coin to break from the pattern.
Moreover, SushiSwap moves within the channel’s bottom portion after authorizing the middle area as resistance. That way, Sushi has a high probability of breaking down from the pattern in the upcoming sessions.
By Ira Lichi – shutterstock.com
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