The cost of buying a single SushiSwap governance token is up more than 15 percent in the last 24 hours.
The cryptocurrency, also referred to as SUSHI, hit a weekly high near $ 2.74 on Monday after a dramatic rise. So it appears that traders poured into the SushiSwap market as SUSHI was trading near levels that previously drove the price 38 percent higher.
Meanwhile, certain fundamentals also helped the upward rally this time around. They include the latest from SushiSwap merger with the prominent decentralized financing project Yearn.Finance. But recently, traders have also been taking signals of SushiSwap’s growing lead over its largest decentralized exchange rival, UniSwap.
Battle of the DEX
The latest on-chain data showed that SUSHI is now moving more value across the blockchain than UniSwap’s governance token UNI. Of the total value transferred, SUSHI is 70-30 ahead of UNI mainly because the former has more support for liquidity mining than the latter.
SushiSwap's SUSHI (green) vs UniSwaps UNI (red) value transferred adjusted in the US dollar. Source: Coin Metrics
In retrospect, Liquidity Mining is a process where a protocol rewards its users with native tokens. UniSwap carried out such a program for two months, during which it distributed 20 million UNI. Nevertheless, it halted the program after its community voted against renewal.
On the other hand, SushiSwap still offers liquidity mining rewards in its pools. That boosts SUSHI’s short-term appeal.
SUSHI Technical Outlook
Technically, the SUSHI / USD exchange rate is trading within an Ascending Channel consolidation pattern.
SushiSwap trade setup. Source: SUSHIUSD on TradingView.com
The pair is showing signs of reversal when testing the channel’s upper trendline as resistance. Should it happen, the SUSHI price can be expected to fall towards the channel’s lower trend line – a decent short opportunity for traders if they maintain a stop loss level above the resistance level.
Meanwhile, a breakout above the upper trend line expects to pump the price by another $ 1.07 – that’s the height of the flagpole that formed before the Ascending Channel pattern. Should the upward move continue, the SUSHI price would target an upward target of $ 1.76.
In contrast, a breakdown below the lower trendline would risk further slashing the SUSHI price by $ 1.07. That would shift the downward target to $ 0.97 – the same level that served as support during a downtrend on Nov. 26.