SUSHI price went parabolic after plunging to the lowest level since October 5 of this year. SushiSwap soared to a high of $1.4490, which was the highest level since August 2022. In all, the coin jumped by more than 30% from its lowest level this week. Other popular DeFi coins like CAKE, UNI, and AAVE surged as well.
Why did SushiSwap soar?
SushiSwap price went vertical for two main reasons. First, the rally was in line with the massive stock and crypto comeback after the latest American inflation data. These numbers showed that the country’s inflation is in a strong bullish trend. Core inflation, which excludes the volatile food and energy prices, rose to the highest level in 40 years. In the aftermath of the report, Nasdaq 100 rose by 232 points while the Dow Jones jumped by more than 820 points.
SUSHI price also surged because of the giant fundraising by Uniswap. The parent company of the popular DeFi protocol raised $165 million from venture capital firms at a $1.6 billion valuation. Therefore, other DeFi tokens rose since that large hoard was a sign of validation about the sector,
Meanwhile, investors believe that the new Sushi Head Chef will reinvigorate the platform after its remarkable fall from grace. However, it has been a tough few days after the new CEO was accused of being a scammer. A twitter user accused him and provided receipts of his scams going back more than a decade ago. He has rejected these accusations.
SUSHI price prediction
The hourly chart shows that the SUSHI crypto price went parabolic on Thursday and continued this comeback on Friday. As it rose, the coin managed to move above the important resistance level at $1.28, which was the highest level since October 12. It also moved in line with the bullish side of the Supertrend indicator while the Relative Strength Index (RSI) has moved above the overbought level.
So, will the SushiSwap gains hold? There is a likelihood that the coin will continue rising since it has formed a cup and handle pattern on the four-hour chart. If this happens, the next key level to watch will be at $1.5. A drop below the support at $1.36 will invalidate the bearish view.