Does SushiSwap’s rising demand mark an upcoming bull run?
Journalist
Posted:
- SUSHI’s supply held by top addresses flattened, while its supply on exchanges dropped.
- Market indicators were unclear regarding the token’s next move.
SushiSwap [SUSHI] has witnessed a massive drop in its supply on exchanges, which suggested that the token was under buying pressure at press time. An increase in buying pressure generally means that investors’ trust in an asset is high.
Read SushiSwap’s [SUSHI] Price Prediction 2023-24
But regardless of the above positive indication, what do SushiSwap’s other metrics say about the trajectory of the token in the near future?
Are investors actually buying SUSHI?
Notably, a 26 September tweet by Santiment pointed out that quite a few altcoins registered a decline in their supply on exchanges. Apart from SUSHI, the other altcoins on the list were Curve [CRV] and Injective [INJ].
📉👍 If you are the owner of any $SUSHI, $REEF, $ELF, $BICO, $CRV, or $INJ, then you’ll be happy to see that more & more of their supplies are moving into self custody. Historically, these kinds of major waves off exchanges are good for future prices. https://t.co/nS45eDkW1z pic.twitter.com/rhoGpfiosL
— Santiment (@santimentfeed) September 26, 2023
When the metric drops, it usually means that investors are buying the asset. Historically, these kinds of major waves of exchanges have been good for future prices.
Moreover, as per LunarCrush, the market’s confidence in SUSHI was high, as its social engagement and bullish sentiments soared over the last seven days. However, a bearish metric was SushiSwap’s Altrank, which dropped.
But despite this, the DEX’s supply held by top addresses flattened, as did its total number of holders. Moreover, SushiSwap’s exchange outflow spiked only once in the last seven days – yet another concerning sign.
Whale activity around SUSHI was also low, reflecting their waning confidence in the token.
Source: Santiment
Nonetheless, the drop in its supply on exchanges did have an effect on the token’s price. According to CoinMarketCap, SUSHI’s price went up marginally in the last 24 hours, along with a 5% uptick in its trading volume.
At the time of writing, SUSHI was trading at $4.30 with a market capitalization of over $2.4 billion.
Realistic or not, here’s SUSHI’s market cap in BTC’s terms
What should you expect from SushiSwap?
A check of SushiSwap’s daily chat painted a bearish picture, as most of the indicators supported the sellers. For instance, the MACD displayed a bearish crossover.
Besides, SUSHI’s Relative Strength Index (RSI) registered a downtick, suggesting a drop in its price. A similar trend was also seen in its Money Flow Index (MFI) and Chaikin Money Flow (CMF), which were both heading towards the neutral mark at press time.
Source: TradingView
