SushiSwap’s native token SUSHI lost its higher bids entering the new weekly session Monday as its price fell 4.47 percent.
As of 1236 GMT, the SUSHI/USD exchange rate was $2.2813, having bounced off its intraday low of $2.2661 in the late Asian trading session. In doing so, the pair maintained the last week’s support offered by its 20-period exponential moving average on the four-hour (4H) play.
SushiSwap Rising Wedge
Traders should, however, also note that an Ascending Trendline — just below the 20-EMA wave — served as a more reliable support level ($1.89-1.93) when SUSHI slipped lower on December 11. Further strengthening the trendline floor was the token’s 100-period EMA, as shown in the chart below.
SushiSwap sees buying sentiment near the 100-EMA (blue wave). Source: SUSHIUSD on TradingView.com
Each bounce off the Ascending Trendline-100-EMA support resulted in a short-term upside move towards another rising trendline that acted as a resistance level. Together, the upper and the lower trendlines formed a Rising Wedge — a bearish reversal pattern per technical descriptions.
The SUSHI/USD exchange rate has traded within the range specified by the Wedge. The pair has formed a sequence of higher highs and higher lows, with volumes depleting as the trend moves forward. Its latest retest of the lower trendline raises its prospect of hitting the Wedge resistance, with the next price target near $2.86.
Meanwhile, an immediate downside break below a flurry of immediate supports, including the 50-EMA, the lower trendline, and the 100-EMA, confirm a negative breakout. Technically, such a move should crash the SUSHI price to as low as $1.10 (equal to the maximum distance between the Wedge’s upper and lower trendline).
Alternative Bullish Setup
Adjusting the Wedge’s upper trendline and switching the timeframe from 4H to…