SushiSwap (SUSHI) Rises 2.5%, Outperforms Bearish Crypto Market
What is the profitability of SUSHI investors in January?
The cryptocurrency SushiSwap (SUSHI) has seen an increase of more than 2.5% in the past week. Although the market overall was rather bearish, there were some metrics that suggest a bullish trend. The question now is: Can SUSHI investors expect profits in January?
SushiSwap investors in the black
The past week has been bullish for SushiSwap as the price development benefited the investors. According to CoinMarketCap, SUSHI rose by more than 2.5% in the last seven days. At the time of writing this article, SUSHI was trading at $1.11, with a market capitalization of over $258 million. This price increase has brought higher profits to investors. In fact, renowned crypto analyst Ali pointed out an interesting development: More than 82% of SUSHI holders were ‘out of the money’, suggesting that SUSHI could be undervalued.
Is SUSHI facing another increase?
To understand whether this means another price increase, AMBCrypto took a closer look at the state of SUSHI. An analysis of the Santiment data showed that the social volume of SUSHI surged in the past week, indicating an increased popularity of the token in the crypto space. Despite the price increase, the weighted sentiment of the token remained on the negative side, suggesting that the market is rather bearish towards SushiSwap.
The outflow of the token from exchanges also increased in the past week, which is a clear sign that the buying pressure on the token is high – a bullish signal. Although the MVRV ratio of SUSHI remained low, it showed a slight improvement, which can help sustain the price increase of SUSHI. However, the network growth declined in the past week, meaning that fewer new addresses were created to transfer the token.
Realistic or not, here is the market capitalization of SUSHI in BTC
A look at the daily chart of SUSHI shows that the bulls could soon overtake the bears, as the MACD charts are closely aligned. The Relative Strength Index (RSI) of SUSHI showed a slight increase and moved towards the neutral mark, which increases the chances of a sustained price increase in the coming days. The Chaikin Money Flow (CMF) remained bearish, however, as it headed south in the recent past.
Although the market signals are mixed, much suggests that SUSHI investors could remain profitable in January. As always, investors should conduct their own research and carefully consider their investment decisions.
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Sources: CoinMarketCap, Santiment, TradingView
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