Sushiswap (Sushi) made an incredible surge of 14 percent in the last 24 hours to trade at $0.78.
However, a blockchain analytical platform suspects a possible market manipulation. 

Sushiswap (Sushi) has in the last seven days surged by 28 percent to trade at $0.783142. In the past 24 hours alone, the asset has recorded a whopping gain of 14 percent. Its trading volume in the past day was quite impressive as it recorded $121,683,483 and a market cap of $182,036,375. The trading volume is a 445 percent increase, outshining several altcoins including the top ten big-cap cryptos. 

However, an analyst senses foul play in this unexpected surge. According to the web3 analytical tool Lookonchain, there is market manipulation as someone goes long on Sushi to make a profit. Per their observation, a new wallet is using more than 90 addresses to buy Sushi on decentralized exchanges while depositing Circle (USDC) to perpetual exchanges such as DYDX to go long on the asset. 

The price of $SUSHI is up 16% today. It seems someone is manipulating the price of $SUSHI and going long $SUSHI to make profits. A fresh wallet is buying $SUSHI on #DEX and depositing $USDC to perpetual exchanges such as #dydx through multiple addresses(probably long $SUSHI).

When Sushi was trading at $0.71, 640,000 USDC was used to purchase 900,514 SUSHI. With the current rally, about $465,760 in short positions has been liquidated. Comparatively, long positions liquidated amount to $138,080.

The wallet may be making profits by raising the price of SUSHI and going long SUSHI.

More on the Sushiswap Price Analysis

A quick look at the market discloses that Sushi earlier attempted to break its $0.8 resistance level but was rejected by bears. The asset is also overbought. However, analysts believe that Sushi could make another run to trade above $0.8 since the Relative Strength Index (RSI) is showing a bullish potential. This also informs investors to stay alert to avoid bull traps. Also, it has shown its readiness to start a double-bottom pattern breakout at the neckline resistance. 

The Awesome Oscillator (AO) indicator is also showing a bullish potential as it moves across the positive zone. According to the report, the asset could extend the run to hit $0.9. A price prediction platform has estimated that the asset can close the year at $0.939906. On average, Sushi could hit $1.17 before the year ends. On the maximum, buyers at the current price could make a significant gain with a possible $1.41 before December 31. 

However, investors are advised to tread cautiously with the reports of market manipulation. The reason is that the long positions could be cut off guard, causing the price to take a sharp fall to as low as $0.72. When buyers fail to take charge of the market at this position, the pullback may continue till the price hits $0.65. In the worst scenario, Sushi can fall to $0.52, indicating a 30 percent fall. 

As of press time, most of the top crypto assets were in red with Bitcoin down by 0.21 in the last 24 hours, BNB down by 1.8 percent, and Cardano down by 4 percent in the last 24 hours. 

 

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Filed under: Bitcoin - @ November 1, 2023 8:16 pm