Sushiswap (SUSHI) has been moving up since leaping on May 23rd.
It has emerged from a short-term descending resistance line and is approaching a very important area of resistance.
Sharp drop for SUSHI
SUSHI has been gradually moving down since March 13, when it hit an all-time high of $ 23.43.
The decline accelerated after a lower peak on May 18th. It peaked with a low of $ 6.29, reached on May 23rd. However, since then the token has been moving upwards.
The decline confirmed the $ 9.25 area as support. This is both the 0.618 Fib retracement level of the entire previous upward move and the previous resistance area.
Despite the leap, technical indicators are showing mixed signals. Although the MACD is negative, it has been in an upward trend since mid-March.
The RSI 50 line is on the right and the Stochastic oscillator has a neutral slope. Therefore, the trend cannot be determined by looking only at the daily time frame.
Short term action
The short-term two-hour chart is in an upward trend. This shows that SUSHI is leaving a descending line of resistance that has been in place since May 18th.
After the break, the token formed a higher low and regained the $ 10.25 area. The next resistance is located at the 0.618 Fib retracement level of $ 16.35. The retracement of the latter will confirm that the trend is bullish.
Both the RSI and MACD are in a bullish trend and support the continuation of the upward movement.
SUSHI wave number
Cryptocurrency trader @altstreetbet outlined a SUSHI chart indicating that the current impulse and the ensuing correction are now complete.
The upward impulse that started in November 2020 is likely to end with March 13, the all-time high mentioned above. If it were, the following move would be a corrective structure A-B-C.
As stated earlier, this will be confirmed by recovering the 0.618 Fib resistance from $ 16.35. Conversely, a drop below $ 6.29 (red line), the low of May 23, would invalidate this possibility.
The DeFi Index shows a decreasing resistance line since May 12. The line coincides with the $ 2,520 resistance area, which is the 0.5 Fib retracement resistance level.
Until the index manages to move above this level, we cannot think the trend is up.