Investors and traders in SushiSwap are faced with a peculiar dilemma as both optimistic and bearish signals fight for market control. The increased whale sightings may be due to SushiSwap’s recent addition on Boba Network.
This indicates that SushiSwap is a growing bullish market, but the TVL numbers provide a counterpoint. As reported by DeFiLlama, Sushi’s TVL numbers fell on November 3 but have since risen, reversing the monthly decline.
While the listings and sightings of whales are fascinating, how will Sushi perform in November? If at all, December?
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Bulls win over Bears
Today’s excitement for SushiSwap isn’t just due to TVL. CoinGecko predicts a brighter future of SushiSwap’s native token, Sushi.
Positive momentum is evident across a range of time frames, but the month-to-month timeframe shows the greatest growth rate at 59.2 per cent. In part, this is because of the exposure gained via SushiSwap’s inclusion on the Boba Network.
Recent reports about SushiSwap’s reorganization may possibly be a contributing factor. The DAO that underpins SushiSwap was split on October 26 into three legal organisations, one each in Panama and Cayman islands.
With unanimous support for the restructure, the community voted. The modification was prompted by the Commodity Futures Trading Commission’s (CFTC) lawsuit against Ooki DAO, since the commission claims Ooki breached US investing laws.
What will Sushi do this Month?
Sushi bulls can start being optimistic this November, as Sushi enters a positive market structure. Currently, the EMA ribbon indicator suggests that the most profitable position in current bull market is long. An increase in Stoch RSI indicates an optimist market sentiment.
However, Chaikin’s money flow indicator reveals a different reality. CMF has a neutral level of 0, which indicates that there is high market volatility and the potential for a bearish or bullish breakout. As the currency nears its peak, bearish reversals become more likely.
The Stoch RSI should be monitored by sushi traders and investors to decide whether they want to sell or increase their holdings. If the indicator is higher than the upperband of the overbought area, it could cause rapid losses in the correction phase.
Total market capital of SUSHI at $240 Million on daily chart. Featured Image from Japan Centre. Chart: TradingView.com| Featured image from Japan Centre, Chart: TradingView.com Disclaimer: This analysis is the author's own understanding of crypto markets and shouldn't be taken as investment advice.