- SUSHI’s Price Surge and Potential Manipulation: SushiSwap’s (SUSHI) price has witnessed a significant 20% surge, raising suspicions of potential market manipulation as a new wallet actively purchases SUSHI tokens.
- Investors’ Caution Advised: While the asset could extend its gains by an additional 5% to surpass the $0.80 psychological barrier, investors are urged to remain vigilant due to the risk of a sharp correction, a characteristic move by smart money.
In the dynamic realm of cryptocurrencies, SushiSwap (SUSHI) has recently made headlines, boasting a remarkable 20% increase in its price. However, this sudden price spike has raised eyebrows, leading some blockchain experts to question the authenticity of this upward trend.
Analyzing SUSHI’s Price Movement
A notable green candlestick on SUSHI’s price chart indicates strong bullish momentum, positioning SUSHI as one of the standout performers in the crypto market. Yet, as we delve deeper, there is a growing suspicion of manipulation.
Lookonchain, a respected web3 blockchain analytics tool, has spotlighted unusual on-chain activities. Their investigation reveals that a freshly created wallet has been actively acquiring SUSHI tokens from decentralized exchanges, while simultaneously depositing USDC, a stablecoin, into perpetual exchanges like dYdX via numerous new addresses.
The price of $SUSHI is up 16% today.
It seems someone is manipulating the price of $SUSHI and going long $SUSHI to make profits.
A fresh wallet is buying $SUSHI on #DEX and depositing $USDC to perpetual exchanges such as #dydx through multiple addresses(probably long $SUSHI). pic.twitter.com/IQQ93xE2PQ
— Lookonchain (@lookonchain) October 31, 2023
This peculiar activity has resulted in an impressive trading volume spike of almost 445% for SUSHI, significantly outpacing its market peers. Furthermore, the analysis from Lookonchain suggests that the wallet in question, after purchasing 900,514 SUSHI tokens at an average price of $0.71 per token, may be attempting to manipulate the market. The goal? To inflate SUSHI’s price and subsequently profit from a long position.
SUSHI’s Market Outlook and Potential Risks
As of the current market snapshot, SUSHI is trading at $0.75, having faced resistance at the $0.80 level. Despite this, technical indicators like the Relative Strength Index (RSI) and the Awesome Oscillator (AO) suggest that there is still room for upward movement, albeit with caution due to the overbought conditions.
Investors and traders should remain vigilant, considering the potential for market manipulation highlighted by Lookonchain. Giving in to the allure of rapid gains could result in significant losses, as a sudden and sharp correction — a move commonly associated with smart money and market manipulation — remains a distinct possibility.
Should selling pressure increase, SUSHI’s price might retract below the $0.72 level, with further potential to test supports at $0.65 and even plummet to $0.52, marking a 30% decrease from its current position.
In summary, while SUSHI’s recent price surge has certainly captured the attention of the crypto community, the potential for market manipulation necessitates a cautious and informed approach from investors looking to navigate these turbulent waters.
