SushiSwap (SUSHI) is likely to have completed a long-term correction. This will be confirmed when the price breaks out of the current long-term descending resistance line.
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Descending resistance line
SUSHI has been declining along with a descending resistance line since hitting a high of $22.50 on May 18. The line has rejected the price several times, most recently on November 3, which resulted in a high. new low is $4.33 on Dec. 4.
However, SUSHI has edged higher since then and reclaimed $6.30 on Dec.
It is currently approaching the resistance line again. A breakout above this line will likely confirm that the correction is complete.
Technical indicators are increasing, supporting the continuation of the uptrend.
The MACD, created by the short-term and long-term moving averages (MAs), is sloping up and close to crossing into the positive zone. This means that the short-term MA is moving faster than the long-term MA and is a sign of an uptrend.
The RSI, which is a momentum indicator, has moved above 50. This is another indicator of an uptrend.
Daily SUSHI/USDT Chart | Source: TradingView
SushiSwap recovery
The six-hour chart shows that SUSHI is moving along another short-term descending resistance line, near $9, which coincides with the $8.85 resistance area.
It reached the resistance line on December 26 and was rejected.
Despite the short-term decline, both the MACD and the RSI are sloping up, supporting the continuation of the uptrend.
Therefore, SUSHI is likely to break out of this horizontal resistance and the long-term descending resistance line.
SUSHI/USDT 12-hour chart | Source: TradingView
Counting waves
Trader @TheTradingHubb has outlined a SUSHI chart showing the correction is complete. This will be confirmed when the price reclaims the $6.50 zone.
The source: Twitter
Since the tweet, SUSHI has moved above this zone and continues to move higher. Therefore, it is likely that the adjustment is complete.
When looking at the whole up move since October, it looks like SUSHI completed the long term wave 1 (white) and correction 2 containing the WXY (black) structure.
Therefore, it looks like it has started the long-term wave 3.
If true, SUSHI could rise to new ATH levels and more.
The nearest resistance is found at $16.20, created by the 0.618 FIb retracement level and the horizontal resistance area.
SUSHI/USDT 3-day chart | Source: TradingView
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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