- SushiSwap is a fork of Uniswap, a decentralized exchange that became extremely popular.
- SUSHI, the token of Sushiswap, managed to reach a $270 million market capitalization but lost most of its token value.
Sushiswap is a fork of Uniswap and uses SUSHI tokens to grant users control over the protocol and rewards them with a portion of the fees collected. Sushiswap quickly turned heads and became extremely popular, especially thanks to its native token and the ability to stake several other tokens to obtain it.
SUSHI was quickly listed on major exchanges, including Binance, and had a massive rally towards $16. Unfortunately, the surge was short-lived, and the token lost most of its value due to its founder selling his tokens. Chef Nomi, the founder of Sushiswap, announced that it will sell all SUSHI holdings to ‘stop caring about price.’
Of course, the announcement was met with a lot of criticism from the Sushiswap community accusing the founder of exit scamming. The controversy didn’t end there as Chef Nomi eventually came back and returned $13 million in Ethereum.
To everyone. I fucked up. And I am sorry.
— Chef Nomi #SushiSwap (@NomiChef) September 11, 2020
Although many people accepted the apology, many criticized the founder even further, stating that he only returned the funds because he got doxxed—a practice that involves publishing private and identifying information about a particular individual.
The price of SUSHI is dead
It’s no surprise that SUSHI’s value has fallen so hard. Since its peak September 1, the digital asset is down by more than 92% and unable to recover.
SUSHI/USD 4-hour chart
Furthermore, instead of positive signals, on the 4-hour chart, the TD sequential indicator has just presented a sell signal. The price is currently at $1.31 below the 50-MA resistance level. The nearest support level was formed at $1.21, which is the most likely target for the bears in the short-term.
SUSHI IOMAP Chart
The In/Out of the money around price chart by IntoTheBlock shows a dull picture for the bulls. The nearest support area is between $1.28 and $1.31, where 2.3 million SUSHI tokens were bought. However, this is minuscule compared to the resistance area between $1.32 and $1.36, where 61 million SUSHI tokens were bought.
SUSHI New Addresses
Nonetheless, there are some positive news for SUSHI holders. The number of new addresses entering the network has increased over the past three days from 166 to 263, which shows a growing interest in buying the dip.
SUSHI Holders Distribution
Furthermore, the number of whales with at least 10,000,000 tokens has increased by one on September 28, representing close to $13,000,000 at current prices.
If bulls can defend the $1.21 support level on the daily chart, a bounce towards the last high at $1.48 is likely.