The SUSHI price chart displays the formation of flag patterns in the weekly time frame chart. The price action has been strictly following this pattern and has recently caused a 60% free-fall. The bulls will resume their buying by obtaining support from the falling trendline, indicating a reasonable possibility of bullish reversal.
Key technical points:
- The SUSHI price chart shows several lower price rejection candles at $4.5 support.
- The weekly-20 MA line provides strong resistance to SUSHI price
- The intraday trading volume in SUSHI/USD is $209.4 Million, indicating a 34.5% fall.
In our previous coverage of SUSHI technical analysis, the recovery rally in SUSHI price challenged a combined resistance of $9.8 and the resistance trendline of the flag pattern. The coin price experienced strong supply from these overhead resistances and was rejected with a weekly-evening star pattern.
- This renewed selling pressure plummeted the coin price to the support trendline($4.5), indicating a 50% devaluation.
- The crucial EMAs(20, 50, 100, and 200) indicate a bearish alignment in the daily time frame chart. Moreover, a negative crossover from the 20 and 50 EMA accelerates the ongoing selling.
- The weekly-Relative Strength index(34) slopes show a slight bullish divergence in the bearish territory.
Will SUSHI Bulls Reclaim The $5 Mark?
On January 21st, the SUSHI price nosedived below the $5 support. However, the coin buyers still defended the support trendline displaying multiple lower price rejection candles. The coin price could pull back to retest this flipped resistance($5); however, under the influence of the flag pattern price shows a high possibility to breach this resistance.
The Daily-Stochastic RSI provides a bullish crossover of the K and D line in the oversold region, indicating the price could start to rally.
- Resistance levels- $5, $6.2
- Support levels- $4 and $3
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.