SushiSwap [SUSHI] has experienced a significant increase in price, making it one of the winners in the current market. Are derivative traders also sharing this bullish sentiment due to the price uptrend?
SushiSwap spikes by over 80%
SushiSwap stands out as one of the leading beneficiaries in the current bull market for altcoins. This bullish trend is partly due to the recent uptick in Bitcoin’s [BTC] value over the past few weeks.
As Bitcoin maintained a price above $34,000, its profits have flowed into these altcoins. Additionally, according to a Santiment report, it has witnessed an impressive 82% increase in value over the past week.
Analyzing SUSHI’s trend
On the daily timeframe chart, a significant portion of SushiSwap’s remarkable 80% value rise occurred during a single trade. The trade accounted for 47.80% of that increase on 1 November.
After that, the asset experienced a slight drop of more than 8% in the following trading session. However, it still held within the new price range. At the time of this writing, it was trading at around $1.0, with a 2% increase in value.
Furthermore, the Relative Strength Index (RSI) suggested the potential for a price correction in the near future. The RSI had risen above 80, signaling that the asset was overbought and in a bullish trend at the time of writing.
Additionally, the declining trading volume indicated that a price retracement might happen soon.
Derivative traders bank on price increase
An examination of the funding rate on Coinglass indicates that derivative market traders also exhibited a positive outlook on prices. The SushiSwap funding rate surged to its highest level in several months, reaching around 0.2%.
Subsequently, it gradually declined but remained in positive territory, standing at around 0.01% at the time of this report.
Moreover, the liquidation chart revealed that the price spike led to an increase in liquidations. At press time, there was only a minor disparity between short and long liquidations.
Short liquidations amounted to approximately $213,000, while long liquidations stood at around $218,000.
Source : AMBCrypto by Adewale Olarinde / November 05, 2023