Is SUSHIUSDT ready to recover to previous highs?

25 nov 2021

SushiSwap is a type of a decentralized exchange called an automated market maker (AMMA). Automated market makers lets users trade cryptocurrency tokens with no central authority managing the trade. SushiSwap uses mathematical formulas to set prices and processes trades using smart contracts. On the first day of trading the price made a high at the $15-$16 range and then started a strong downtrend that resulted in the price going to a low of $0.5! The reason for this was that SushiSwap wasn't the first AMM, it is based on another AMM, called UniSwap. UniSwap's code was used to create SushiSwap, there was nothing new about it, Which was why the price crashed more than 95% in a matter of 2 months. It wasn't attractive enough, investors just kept on providing liquidity to UniSwap's pools and very few switched to SushiSwap. By that time, everyone thought that the token is dead and can't recover, but the anonymous developer of SushiSwap, who goes under the fictitious name "Chef Nomi" , had a different idea. He/She was able to come up with a tactic help SushiSwap gain an edge on its rival. Users would have to deposit UniSwap tokens to earn rewards on SushiSwap. Those who switched from UniSwap to SushiSwap gained alot more rewards on SushiSwap, Which resulted in SushiSwap gaining about $800 million in crypto funds. That's when the price started recovering and was able to make a high of $23 on March,2021. Looking at the chart of the coin we can see that the price action is very noisy and slow. Currently the price is returning to a very strong demand zone at the $6.9 range, Which is the 25% of the distance between the high and the low. The 25% level is a very strong support, the last time Sushi tested that level, it formed a double bottom pattern that resulted in a strong reversal to the upside. After that the price came back and tested the neckline of the double bottom, had a weak bounce, then started a strong downtrend. I am expecting sushi to bounce again from that level especially with the RSI being oversold on the Daily chart. Developing price action will hint if the bounce is strong enough to recover to previous highs. I will keep y'all updated.