SushiSwap targets resistance blocking price rally to $4.0

SushiSwap (SUSHI) price could rally to $4.0 or higher in the next few days if current momentum carries it past a key barrier at $2.80

SushiSwap is trading near a crucial price level that could see the DeFi token’s value rocket to highs around $4.0. The token is currently looking strong and likely to continue with the upside. At the time of writing, SUSHI/USD pair is up more than 5% in the past 24 hours to trade around $2.68.

While a downside from current price levels is likely, the technical picture offers a more encouraging outlook for bulls in the short term. This suggests buyers have the opportunity for a breakout above the ascending wedge pattern presented on the 4-hour chart.

SUSHI/USD 4-hour chart. Source: TradingView

The chart shows that bulls have been trying to break above the pattern’s upper trendline that caps action around $2.80. The RSI is in the overbought territory and the upsloping moving averages suggest bulls have the upper hand and will likely continue with the uptrend in the short term.

It means that buyers need a successful breach of the $2.80 level, which has already thwarted upside moves in the past few hours. Managing a sustained positive to $3.00 would open up a potential rally to the aforementioned $4.00 target level.

If bulls fail to clear the hurdle, a downturn in the near term would see prices drop to the initial support level at the 20-SMA (currently at $2.50). From here, a bearish flip in the technical outlook could require bulls to defend gains at the 50-SMA (currently $2.27).

SUSHI/USD 1-hour chart. Source: TradingView

On the hourly chart, SUSHI/USD is above the 100-hourly simple moving average to suggest healthy support lies beneath current prices. The 100-SMA ($2.42) is below the 50-SMA ($2.59), the gap providing a breathing space for bulls should bears turn stronger in the coming sessions.

The potential for a breakdown is also developing, given the negative divergence of the hourly RSI. If the price drops below the 50-SMA and 100-SMA support levels, the downtrend could take SUSHI to lows of $1.90. Below this level, bears might target $1.00.

The post SushiSwap targets resistance blocking price rally to $4.0 appeared first on Coin Journal.

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