The phenomenal growth of the Sushiswap project, which began in November 2020, gave its investors almost 4000% of the profit. An interesting alternative that was supposed to compete with Uniswap took its rightful place among the DeFi projects. According to Defipulse.com, about $4.2 billion has been blocked in the Sushiswap project, which puts the project in 6th place in the overall ranking.
Looking at the weekly timeframe, the SUSHIUSDT price growth looks like one full-fledged wave, which has never been corrected for half a year:
As you can see in the chart, the SUSHI price slowed down at the mark of $16 from which SUSHI began trading on the Binance exchange on 1 September 2020.
In fact, since February 2021, the SUSHI market has significantly slowed down and began consolidation in a wide range of $14.3-20.7. On 5 March, buyers managed to prove their dominance in the market by fixing above the historically important mark of $16. However, investors did not wait for a new powerful wave of growth after the retest of $16:
A strong buyer is in the range of $13.7-14.4
Sellers have shown a real liquidity zone in which buyers are eagerly buying Sushiswap (SUSHI). This is the range of $13.7-14.7. Carefully looking at the chart, you can see that it was in this range that the SUSHI price began to slow down in February. In addition, each attempt of sellers during this period to lower the price below the range of $13.7-14.7 ended in a false breakout and a local market reversal.
At the moment, buyers have again managed to keep the critical range. And now they are preparing for a new wave of growth. However, trading volumes are too low for momentum. If we compare the current trading volumes with the volumes in the period from 27 January to 4 February, we see that the situation is radically different. This fact at least postpones in time a new growth wave in the SUSHI market.
Bitcoin can play a cruel joke on SUSHI
In addition, despite the BTCUSDT price movement, there is a great risk of the entire crypto market collapse. Having entered the range of $65,000-75,000, large investors can start taking profits and crash the BTC price below $59,000. Such a sharp fall wave will lead to a collapse in both the crypto market and the DeFi ecosystem.
Another negative signal for SUSHI buyers is the SUSHIBTC pair chart:
In fact, the correction has been going on in the SUSHIBTC market since February. The price falls on low volumes and no initiative buyers are seen on the chart.
If buyers cope with the above problems, we will expect the SUSHI market to continue to grow to $33. However, if the price breaks the range of $13.7-14.7, it is better to get rid of this coin.
