SushiSwap Analysis Shows Rising Wedge Keeps The Bulls Uncertain

The new SushiSwap analysis shows that the rising wedge on the 4-hour charts is what keeps the bulls uncertain as the native token lost its higher bids that entered a new weekly session on Monday as the price fell 4.47 percent so let’s read more about it in the latest altcoin news.

As of 1236 GMT, the SUSHI/USD exchange rate hit $2.2813 after it bounced off its intraday low of $2.2661 in the Asian trading sessions. In doing so, the pair maintained the last week’s support offered by the 20-period exponential moving average on the 4-hour charts. traders should note that the Ascending Trendline below 20-EMA wave served as a reliable support level once the coin slipped lower on December 11 and strengthening the trend line level was the 100-period EMA as it can be seen on the charts. Sushiswap now sees its buying sentiment near the 100-eMA.

SushiSwap analysis shows that by each bounce from the Ascending Trendline, the 100-EMA support resulted in a short-term upside movement to the rising trendline which acted as a resistance level. the upper and the lower trendlines formed a Rising wedge which is a bearish reversal pattern according to the technical descriptions. The Sushi/USD exchange rate was traded in the range specified by the Wedge and the pair even formed a sequence of higher highs and lower lows with the volumes depleting once the trend started moving forward. The latest retest of the lower trendline raised the prospects of the Wedge resistance level with the next price targeting $2.86.

In the meantime, the immediate downside break below the flurry of immediate support with the 50-EMA, the lower trendline confirms a negative breakout. This move should crash the SUSHI price to as low as $1.10 which is almost equal to the maximum distance between the Wedge’s upper and lower trendline. Adjusting this upper trendline and switching the timeframe makes the coin look more bullish. The setup results in an Ascending Channel formation which follows a downtrend.

Fundamentals support Sushiswap which as a decentralized exchange, made a new partnership with a top decentralized project Yearn.Finance. Now, the cost to purchase one SUSHI surged by 75 percent after the partnership so the traders saw SushiSwap combo as bullish for both of their native tokens.