Sushi Price Surges 20% in Anticipation of a Possible 32% Breakout – Market Manipulation or Bullish Momentum?

Crypto News– Sushi price has taken the spotlight as one of the standout gainers this Tuesday, surging by an impressive 20% in a mere 24 hours and reaching a price point of $0.75. As the native token of the decentralized exchange (DEX) SushiSwap, Sushi has been consistently demonstrating its robust bullish trend, with gains of 25% over the past month, 39% in the last two weeks, and a noteworthy increase of 26.5% in the past week.

Backing this upward trajectory is the rising trading volume, with an influx of $83 million within the last 24 hours. As of now, Sushi boasts a market capitalization of $143 million and holds the 216th position among various cryptocurrencies, including stablecoins.

Sushi Price Surges 20% in Anticipation of a Possible 32% Breakout – Market Manipulation or Bullish Momentum?

Sushi’s price action has been nothing short of remarkable as it marches toward the $1 threshold. Just like many other cryptocurrencies in the market, Sushi had weathered an extended crypto winter, experiencing a significant drop of 96.8% from its all-time high of $23.38 in March 2021. However, a pivotal moment arrived with the confirmation of double-bottom pattern support at $0.5322. This allowed the bulls to regain control and determine the course of Sushi’s price movement. The breakthrough above the crucial hurdle at the 50-day Exponential Moving Average (EMA) (red) reaffirmed the bullish momentum.

The subsequent climb, overcoming the resistance provided by the 100-day EMA (blue), paved the way for ongoing bullish momentum, marked by an engulfing candle that brings Sushi tantalizingly close to a potential breakout from the double-bottom pattern.

However, there’s a final hurdle in the form of resistance at the 200-day EMA, standing in the path of the anticipated breakout from the neckline resistance at $0.7785. Consequently, traders should be diligently focused on surpassing this barrier to increase the likelihood of Sushi’s ascent beyond $1. Meanwhile, it’s worth noting the Relative Strength Index (RSI) at 84.29, which serves as a cautionary signal. An RSI highly in the overbought range suggests the possibility of a correction. Therefore, it’s advisable to monitor the index’s retreat into the neutral territory as confirmation of a potential pullback.

On a positive note, Sushi remains poised for a double-bottom pattern breakout at the neckline resistance. It’s important to highlight that such a breakout would likely be accompanied by a significant surge in trading volume.

Should this materialize, Sushi’s price could potentially experience a substantial 32% increase, reaching $1.02—a distance equivalent to the pattern’s height.

Is Price Manipulation in Sushi the Work of Whales?

The blockchain data monitoring platform, Lookonchain, recently drew attention to the significant surge in Sushi’s price, while also raising concerns about potential price manipulation.

According to Lookonchain, there are suspicions of deliberate manipulation in the price of $SUSHI, with someone allegedly engaging in long positions on $SUSHI to generate profits.

In a post on X (formerly Twitter), it was revealed that a new wallet was actively purchasing SUSHI on the decentralized exchange and then depositing the stablecoin USDC into perpetual exchanges like dydx, utilizing multiple addresses, which suggests a bullish stance on SUSHI.

Whether there’s manipulation at play or not, the substantial double-digit increase in Sushi’s price is likely to attract investors who wish to ride the current uptrend. However, traders who have not yet entered long positions may prefer to wait for Sushi to break above the neckline resistance at $0.77. This breakout would validate the continuation of the uptrend and reduce the risk of potential downturns.

While the surge in Sushi’s price has piqued the interest of many investors, concerns of possible price manipulation remind traders to exercise caution. It’s crucial to await a clear confirmation of the uptrend’s sustainability, especially by observing a decisive break above the neckline resistance at $0.77. This prudent approach can help traders navigate the market with greater confidence and reduce exposure to potential market fluctuations.