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SUSHI paved the way for the bullish breakout of the DeFi index

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SUSHI paved the way for the bullish breakout of the DeFi index

SUSHI paved the way for the bullish breakout of the DeFi index
CONTENT

  • SUSHI rate faced resistance at $ 1.33.

  • The price has formed a short-term double top.

  • DeFi Index Falls To Resistance At $ 675.

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Since November 6, SushiSwap (SUSHI) has gained an impressive 175%, but has not been able to close above an important resistance level.

As expected, after a short-term pullback, the token price will still be able to overcome this barrier..

SUSHI faced resistance

On November 4, the price of the SushiSwap (SUSHI) token fell to a historic low of $ 0.47. After that, the price began to aggressively strengthen, and by now this growth is already 175%. The market peaked at $ 1.45 on Nov. 15, but formed a long upper wick on the candlestick chart and then pulled back slightly. At the time of writing the analysis, the SUSHI rate was trading around $ 1.33.

SUSHI paved the way for the bullish breakout of the DeFi index

As the upper wick showed, the market failed to close above the important resistance area at $ 1.33. Despite the price rebound, the RSI and the Stochastic Oscillator are still growing, although the former looks overbought.

Noteworthy is the lack of support below the current price levels.

If the SUSHI rate successfully breaks through the resistance area, the next barrier will meet the bulls at $ 1.88.

SUSHI chart. Source: TradingView

Possible correction

Cryptocurrency trader @CryptoMichNL shared a SUSHI chart on Twitter, noting that he expects a correction towards the $ 1.10 or $ 0.90 area, after which the price may try to rise.

Source: Twitter

The shorter-term 2-hour chart shows clear signs of weakening. A double top is likely to be forming around $ 1.30, accompanied by bearish divergence signals on the RSI. This promises a possible reduction in the price. In addition, this price action coincides with the likely top of wave 3 (blue in the chart below).

In this case, support levels can be located at $ 0.90 (Fibo level 0.618 and the resistance line of the channel built by connecting the top and bottom of waves 1 and 2).

Such a decline can form a rollback of the 4th wave, after which the price can move into the growth phase and complete the final 5th wave.

SUSHI chart. Source: TradingView

DeFi Index

SUSHI paved the way for the bullish breakout of the DeFi index

DeFi IndexDecentralized Finance (DeFi) is financial services built on blockchain technology that offer users access to open, efficient and … More also rallying after the bullish breakout of the downtrend line on November 6. Despite the rally, the index has yet to reach the first major resistance area at $ 675.

Technical indicators are not showing signs of weakness yet, so we tend to expect further growth and reaching this area.

DeFi chart. Source: TradingView

Conclusion

Despite the likelihood of a decrease in both the SUSHI rate and the DeFi index in the short term, their further growth is expected to continue in the direction of the above-mentioned resistance areas.

You can read the latest Bitcoin forecast here.

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinions expressed in this forecast do not reflect the opinions of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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