An early session slipover in the SushiSwap’s SUSHI market turned into a buying opportunity for traders that were seeking safety against a dwindling cryptocurrency market this Monday.
The SUSHI/USD exchange rate climbed by more than 24 percent from its intraday low of $12.80. Traders spotted upside opportunities in the pair as its relative strength indicator flashed near-oversold signals. They raised their bids to offset their losses elsewhere in the cryptocurrency market.
So it appears, gains in the SUSHI market largely coincided with a plunge in Bitcoin, Ethereum, and other high-cap digital assets. On the whole, the cryptocurrency had lost more than $25 billion as of 1105 UTC Monday, with Stellar’s XLM, Ripple’s XRP, and UniSwap’s UNI—a SushiSwap rival—notching the highest losses.
SushiSwap jumps as the rest of the cryptocurrency market stumble. Source: SUSHIUSD on TradingView.com
SUSHI Trade Setup
Technically, SUSHI bounced back after testing a confluence of two support levels. The first price floor appeared to be an upward sloping trendline that constitutes an ascending channel pattern. Meanwhile, the second footing came from SUSHI’s 100-4H simple moving average wave.
The rebound opened the DeFi token’s prospects to extending its upside move towards $17.61, its previous record high, followed by a run-up to the ascending channel’s upper trendline, which now sits near the $18.80-19.00 range.
Michaël van de Poppe, an independent market analyst, noted that SUSHI could also decline towards deeper levels if it fails to hold $14.50-14.75 as its interim support range.
“If that fails to hold for support, further downwards momentum is expected and confirmation of the bearish divergence. Looking at $12 and $10 next,” he said.
The latest upside rally pushed the SushiSwap token’s year-to-day gains up to 470 percent. Initially, traders…