In the crypto market today, the majority of major cryptocurrencies have been relatively quiet. However, we have witnessed large fluctuations in some altcoin prices. One of these was SUSHI, the token of Sushi Swap. The token gained nearly 20% in a short day. However, according to analytics platform Lookonchain, this may be due to whale malipulation.
Are whales manipulating the price of SUSHI?
cryptokoin.comAs you follow from , SUSHI experienced a boom today. The altcoin is up almost 20% in 24 hours to $0.75. Thus, he made his name among Tuesday’s biggest winners.
However, some doubts arose. On-chain analytics platform Lookonchain highlighted the huge increase in SUSHI price today. But he warned about possible price manipulation. According to Lookonchain, “someone is manipulating the price of SUSHI. He is also long SUSHI to make a profit. In this context, Lookonchain shared the following:
SUSHI price increased by 16% today. It looks like someone is manipulating the price of SUSHI and longing SUSHI to make a profit. A new wallet buys SUSHI on the DEX and deposits USDC via multiple addresses (possibly long SUSHI) to permanent exchanges like dydx.
Manipulation or not, the altcoin price increase attracts the attention of investors who may want to continue the uptrend. Crypto analyst John Isıge warns investors who have not entered long positions yet. He recommends waiting for SUSHI to break above the neckline resistance at $0.77 to confirm the continuation of the uptrend and avoid possible declines.
Altcoin price explodes towards $1, what’s next?
Like most cryptos in the market, SUSHI has experienced a long-lasting crypto winter. The altcoin is down 96.8% from its all-time high of $23.38 in March 2021. Confirmation of the double bottom formation support at $0.5322 allowed the bulls to take back the reins and determine the next direction. SUSHI price broke above the first major hurdle at the 50-day Exponential Moving Average (EMA) (red). This move strengthened bullish control.
Its subsequent climb above the 100-day EMA (blue) resistance paved the way for a continued upward move in an engulfing candle, bringing SUSHI closer to a breakout of the double-bottom formation. However, resistance at the 200-day EMA still stands ahead of the neckline resistance at $0.7785. This means that investors should focus on breaking above this blockade to increase the chances of the altcoin price rising above $1.
Meanwhile, the Relative Strength Index (RSI) stands at 84.29. This position warns investors to be alert to avoid bull traps. In other words, the RSI at the overbought level for SUSHI indicates that a potential correction may be around the corner. It would be wise to watch for the index falling back to neutral as confirmation of a pullback. On the bright side, the altcoin is still poised for a breakout of the double bottom pattern at neckline resistance. Note that such a breakout will be accompanied by a significant increase in trading volume. In this case, it is possible for the price to rise by almost 32% to $1.02. This is a distance equal to the height of the formation.
The predictions in the article belong to the analyst and are definitely not investment advice. We strongly recommend that you do your own research before investing.
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