As 2021 comes to a close, SushiSwap (SUSHI) has been one of the top performers in the crypto market for the last week or so. The DeFi token is currently on a 7-day bullish run that has seen it gain nearly 35% in value over the same period. But can this momentum continue? Before we get to the price analysis, here are some highlights:
At the time of writing, SushiSwap (SUSHI) had crossed into double figures, trading at $10 and up 10% in 24 hours.
We expect the token to face major overhead resistance at around $10.88 over the coming days.
Despite the bull run, the Relative Strength Index at the time of writing suggests the token is overbought, creating significant downside risk if investors decide to cash in profits.
Data Source: Tradingview.com
SushiSwap (SUSHI) – Price analysis and prediction
It’s been a good week for SushiSwap (SUSHI), no doubt about that. The coin has crossed into double digits for the first time in a while. The next big challenge will be to overcome overhead resistance at $10.88. If indeed this happens, we could possibly see SUSHI test its next resistance of around$11.59 and consolidate around the price if a breakout doesn’t happen.
But one key risk factor is the RSI reading. While most technical indicators look bullish, the RSI indicates SushiSwap (SUSHI) is overbought. If investors decide to lock in profits, then SushiSwap (SUSHI) may come under significant selling pressure, which could lead to a pullback towards $7.8 or thereabout.
Should you buy SushiSwap (SUSHI)
the answer is yes. For long-term investors, SUSHI is a decent DeFi token to have on your portfolio. But the short-term outlook suggests that we may see some volatility around SushiSwap (SUSHI) in the coming days. As such, for short-term bulls, this may not be the most ideal time to get in.