Hungry for SUSHI?

If you have an appetite for sushi, then maybe SushiSwap (SUSHI) is the crypto coin for you. SUSHI has been looking more and more appetizing, as a very bullish Golden Cross indicator has formed recently. A Golden Cross is a technical chart indicator that happens when a short-term moving average (50-day MA, gray line) crosses over a longer-term moving average (200-day MA, purple line). Most technical analysts interpret this as a change in sentiment from bearish to bullish, and it could signal an upturn in the market.

Ready to take a bite?

But this does not mean that you should rush in immediately and buy SUSHI. There are more factors that you need to take into consideration before taking a bite of this crypto. In order to better understand, we need to look at a broader perspective of SUSHI. It looks like it is in a consolidation or accumulation phase at the moment. Financial instruments, such as stocks, bonds and cryptocurrencies, usually behave in a similar way. There are market cycles that repeat themselves over and over in almost all types of financial securities – and SUSHI is no different. 

*Golden Cross spotted in SUSHI’s Daily Timeframe, but the current price is still weak. 

This market cycle can be divided into 4 phases: 

1. 1. 1. Neglect/Accumulation/Consolidation phase
      2. Advancing/Mark-up phase
      3. Topping/Distribution phase
      4. Declining/Mark-down phase

SUSHI’s Market Cycle Reset

After finishing the last phase in the market cycle, it usually resets and returns to Phase 1, thus creating a new market cycle. This is very evident in the SUSHI chart above, where it began with Phase 1 before 2021. Phase 2 began to pick up in early 2021, and this lasted until March, then  came Phase 3 (topping/distribution), which lasted until May when the mini-crypto crash occurred and almost the entire market dumped. This crash initiated Phase 4 (declining/mark-down), and now, the market cycle has been reset for SUSHI. We are most likely back in an accumulation/neglect/consolidation at the moment. 

When to bite? 

Currently, it would be best to wait and let things simmer down for a while. Let the volatility die down, let the price consolidate more, and let the trading volume slowly lighten before getting into a trade. We will see the signs when SUSHI begins heading into its next advancing/mark-up phase. The Golden Cross that has formed is just one positive sign, but we need more positive signals before we act. The sentiment for SUSHI is still neutral/bearish, as it is still trading below the 200-day moving average. It’s best to wait for the bull chef to prepare a better setup for your SUSHI platter.

SushiSwap is a decentralized exchange, automated market maker (AMM) with the governance token, SUSHI. It ranks as the 76th-largest cryptocurrency, with a market capitalization of $1.297 Billion, which was down 10 spots in mid-September, when it rallied to a 4-month high of 16.20.