Sushi Price Forecast: SUSHI's V-Shaped Recovery Eying $22 Seems Unsustainable
- Sushi's rebound from support at $6.2 forms a V-shaped pattern.
- Feeble technicals and strong on-chain resistance could jeopardize the recovery.
Sushi traded impressive May highs at $22 last week. The milestone came after a continuous push for gains by the bulls. The decentralized finance (Defi) token has made a name for rising against all odds, including the dumping by its founders.
The downfall from the record high was unstoppable at various tentative support levels until the buyer congestion at $6.2. With the downside secured, bulls focused on recovery. The last few days have been entirely yielding for SUSHI as the token scaled the levels above $10. At the time of writing, Sushi trades at $13 after hitting a barrier at $14.
Sushi V-shaped recovery in great danger
A V-shaped recovery is a recession type of pattern involving a sharp drop in price followed by a quick but sustained recovery. In a market where a V-shaped price action comes into the picture, there are no defined horizontal support and resistance levels; thus, prices fall and rise rapidly. The idea among traders is to ride the momentum until a barrier or support is encountered.
As for Sushi, the resistance at $14 could sabotage the recovery targeting $22. Moreover, if overhead pressure spikes, losses are bound to occur. Support is envisaged at $10.5, $9, and the primary anchor at $6.2.
SUSHI/USD 12-hour chart
According to IntoTheBlock's In/Out of the Money Around Price (IOMAP) on-chain metric, a robust hurdle validates the unstainable V-shaped technical pattern. Note that this seller's congestion zone runs from $13.59 to $13.96. Here, around 1,400 addresses previously scooped up nearly 73.7 million SUSHI. It would be challenging to slice through this zone and extend the bullish price action to $22.
Sushi IOMAP model
On the other hand, the support areas accorded to Sushi do not seem strong enough to stay in place longer. However, the most substantial buyer concentration zones run from $$10.91 to $11.3. Here, roughly 1,500 addresses are currently profiting from the 13.4 million SUSHI bought in the region.
Sushi's bullish outlook
As discussed, a correction is underway after the rejection at $14. However, support is expected at $11. If buyers manage to turn the price around at this level, the V-shaped recovery could be salvaged, bolstering Sushi toward the coveted $22.