Journalist
Posted:
- The supply of SUSHI at the top addresses is leveling off, while the supply on the stock exchanges fell.
- Market indicators were unclear about the token’s next move.
SushiSwap [SUSHI] has witnessed a massive drop in supply on the exchanges, suggesting that the token was under buying pressure at the time of writing. An increase in buying pressure usually means that investor confidence in an asset is high.
Read SushiSwaps [SUSHI] Price prediction 2023-24
But regardless of the above positive indication, what to do SushiSwap’s other stats say about the token’s trajectory in the near future?
Do Investors Actually Buy SUSHI?
In particular, a tweet from Santiment on September 26 pointed out that quite a few altcoins registered a drop in their supply on the exchanges. Apart from SUSHI, the other altcoins on the list were Curve [CRV] and injective [INJ].
📉👍If you own one $SUSHI, $REEF, $ELEVEN, $BICO, $CRVor $INJ, then you’ll be happy to see more and more of their inventories coming in-house. Historically, these types of large stock market waves are good for future prices. https://t.co/nS45eDkW1z pic.twitter.com/rhoGpfiosL
— Santiment (@santimentfeed) September 26, 2023
When the benchmark falls, it usually means investors are buying the asset. Historically, these types of large exchange waves have been good for future prices.
Moreover, according to MoonCrushMarket confidence in SUSHI was high as social engagement and bullish sentiments surged over the past seven days. However, one bearish measure was SushiSwap’s Altrank, which fell.
But despite this, the supply of the DEX at prime addresses fell, as did the total number of holders. Furthermore, SushiSwap’s currency outflows only spiked once in the past seven days – another worrying sign.
Whale activity nearby SUSHI was also low, reflecting their declining confidence in the token.
Source: Santiment
Nevertheless, the decrease in supply on the exchanges did have an effect on the price of the token. According to CoinMarketCapthe price of SUSHI has risen marginally over the past 24 hours, along with a 5% increase in trading volume.
At the time of writing, SUSHI was trading at $4.30 with a market cap of over $2.4 billion.
Realistic or not, here it is The market capitalization of SUSHI in terms of BTC
What can you expect from SushiSwap?
A check of SushiSwap’s daily chat painted a bearish picture as most indicators supported the sellers. For example, the MACD showed a bearish crossover.
Moreover, SUSHI’s Relative Strength Index (RSI) recorded a decline, indicating a price decline. A similar trend was also observed in the Money Flow Index (MFI) and Chaikin Money Flow (CMF), both of which were moving towards the neutral level at the time of writing.
Source: TradingView
