SushiSwap (SUSHI) forms an ascending triangle, suggesting a potential breakout, while derivatives show declining open interest and volume, indicating caution, and technical indicators reveal fading bearish momentum for the SUSHI price with an oversold RSI and weakening MACD, signaling possible consolidation. According to CoinMarketCap, as of Saturday, May 9, SUSHI is trading at $0.2423 with a 24-hour loss of 2.28%.
Source: CoinMarketCap
SUSHI Derivatives Point to Decreasing Strength
According to Coinglass, the SUSHI open interest declined by 1.87%, reaching $19.08 million, indicating a slight reduction in outstanding derivative positions, reflecting lower trader commitment and cautious market sentiment, with participants reducing exposure amid uncertain short-term conditions.
Source: Coinglass
Volume decreased by 27.76%, totaling $27.04 million, suggesting reduced trading activity and liquidity, with weaker participation from market participants and a possible shift toward caution or consolidation, reflecting changing sentiment and lower engagement in the broader trading.
Also Read: SUSHI Price Prediction: Consolidation Signals Potential Rally Toward $0.24
Momentum Indicators Point to Oversold Conditions
According to TradingView, the RSI stands at 33.43, which is just above the over-sold zone. This signifies extreme bearish sentiment due to a long-term downward trend.
Although the signal line is still below at 32.44, its upward trajectory shows that sellers have finally become exhausted and may create a temporary support level.
Source: TradingView
The MACD stays below zero at -0.12566 but lags behind the signal line. However, the bars of the histogram are getting shorter towards zero, indicating that the bearish trend lacks momentum.
The fact that the MACD moves closer to the signal line indicates a shift from a downtrend to consolidation.
SUSHI Price Setup Signals Potential Bullish Breakout
Despite this cautious outlook, the crypto analyst Alpha Crypto Signal revealed that the SUSHI technical formation can be described as an ascending triangle.
It can be seen that the SUSHI price has been consistently moving against a horizontal resistance while forming a sequence of higher lows. The SUSHI price setup shows the trend of accumulation since the buyers keep buying despite the constant pressure of sell-offs.
Source: Alpha Crypto Signal’s X Post
A clear breakout above the resistance line will provide further evidence that bulls are still in control, leading to an upward move towards the $0.25-$0.26 levels.
In case of a strong breakout by the SUSHI price, however, the uptrend line will continue to act as a strong level of support, from which bulls can step back in.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: SushiSwap (SUSHI) Outlook Strengthens: Trendline Break Could Trigger $0.64 Rally
