As 2021 draws to a close, SushiSwap (SUSHI) has emerged as one of the stronger performers in the crypto markets over the past week. The DeFi token has posted a seven-day rally, gaining nearly 35% over that period. But can this momentum continue? Before diving into the price analysis, here are a few key takeaways:
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At the time of writing, SushiSwap (SUSHI) had climbed into double digits, trading around $10 and recording roughly a 10% gain in the previous 24 hours.
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We expect the token to encounter a significant resistance level in the coming days near $10.88.
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Despite the upward trend, the Relative Strength Index (RSI) indicates that the token was overbought at the time of writing, which raises a meaningful risk of a pullback if investors choose to lock in profits.
Source: TradingView.com
SushiSwap (SUSHI) – Price analysis and outlook
It has been a strong week for SushiSwap (SUSHI). The token has re-entered double-digit territory for the first time in a while. The next major challenge will be overcoming the resistance near $10.88. If SUSHI breaks above that level, it could next test resistance around $11.59 and consolidate around that area unless a decisive breakout occurs.
One important risk to monitor is the RSI reading. While most technical indicators remain bullish, the RSI suggests SushiSwap is overbought. If investors move to secure gains, SUSHI could face substantial selling pressure, which might trigger a pullback toward approximately $7.80.
Should you buy SushiSwap (SUSHI)?
For long-term investors, the answer is yes: SUSHI is a viable DeFi token to consider for a diversified portfolio. However, short-term prospects suggest some volatility may follow in the coming days. Given the overbought conditions and the potential for profit-taking, short-term traders may want to exercise caution and wait for a clearer entry signal or a pullback before opening new positions.