SushiSwap: Estimating the viability of a trend reversal based on these metrics

SushiSwap: Estimating the viability of a trend reversal based on these metrics

January 25, 2023

By Suzuki Shillsalot

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SushiSwap’s market indicators suggested a potential trend reversal.

However, SUSHI’s on-chain metrics remained bullish.

On 24 January, DeFiLlama revealed that the trading volume of SushiSwap [SUSHI] on Arbitrum was steadily increasing. As per the tweet, on 23 January, 44.6% of the total SushiSwap trading volume occurred on Arbitrum.

Apart from trading volume, SUSHI’s price also increased over the last week. SUSHI registered over 6% weekly gains, and at the time of writing, it was trading at $1.36 with a market capitalization of more than $303 million.

While these updates looked optimistic, the market indicators told a different story.

Cold days for SushiSwap again?

A look at SUSHI’s daily chart revealed that there was a possibility of a trend reversal soon, as a few of them were bearish. The Money Flow Index (MFI), after registering a decline, took a sideways path. SUSHI’s Chaikin Money Flow (CMF) went in the same direction as MFI.