SUSHI, the digital token native to the decentralized exchange SushiSwap, has been creating a stir in the market with a remarkable surge of more than 20% over the last 24 hours.
Currently, SUSHI is hovering around $2.45 after experiencing a price increase of over 23% in the past day.
Within the same timeframe, its trading volume spiked by 190%, indicating increased engagement from traders and investors.
Upward momentum in SUSHI crypto prices
With this significant price movement, SUSHI has surpassed a strong resistance level at $2.10, but met another resistance at $2.75 at the time of reporting.
If SUSHI manages to break through this resistance level and close a daily candle above $2.82, there is a strong likelihood that it could surge by 60%, reaching $4.60 in the following days.
Nevertheless, after the recent substantial price increase, there is a high chance that SUSHI might undergo a price correction or consolidate before potentially embarking on another strong move.
Furthermore, its Relative Strength Index (RSI) stood at 78.20, indicating an overbought condition. Assets with an overbought RSI typically witness a price correction or decline.
Increased interest from traders and investors
The positive price action of SUSHI and the recent treasury update have drawn the attention of whales and institutions, as detailed by on-chain analytics company Coinglass.
Data from SUSHI’s inflow/outflow showed a significant outflow of $6.82 million from exchanges in the past day. Apart from long-term holders, traders have also displayed a strong interest in the digital asset.
According to Coinglass, SUSHI’s Open Interest has surged by 44.73% in the last 24 hours, suggesting the initiation of new positions amidst the bullish price movement.
It appears that the bulls are in control of the asset, potentially providing support for SUSHI in its upcoming upward trend.
The Treasury Diversification Proposal: What You Need to Know
The recent surge in momentum can be attributed to the latest announcement by Jared Grey, the Head Chef of the platform, regarding the introduction of the Treasury Diversification Proposal within the SushiSwap Foundation.
This proposal is designed to reduce volatility, enhance liquidity, and generate passive income.
To successfully execute this strategy, Sushi DAO has redistributed its treasury assets into three categories: stablecoins, DeFi tokens, and major cryptocurrencies like Bitcoin and Ethereum.