SushiSwap price has broken out of a descending triangle pattern that had kept it in a downtrend since mid-July.
Summary
- SUSHI price has been on a downtrend since July.
- The token has invalidated a multi-month descending triangle pattern.
According to data from crypto.news, Sushi (SUSHI) was trading at $0.79 up 2% in the past 24 hours and 6.3% in the past 7 days. Its market cap stood at $153 million as of press time.
Despite its weekly gains, the token remains 62% below its July high, since when bears have brought the token down to $0.70 multiple times.
A few catalysts have emerged that could support further upside for SUSHI.
First, SushiSwap has recently gone live on HyperEVM. This enables swapping HyperEVM assets via its aggregator interface, marking a deeper integration with the Hyperliquid ecosystem.
Such a move positions SUSHI at the center of a growing multi-chain liquidity network and expands its use case across more than 40 supported chains.
Another factor that could support its potential is the strong earnings recorded in Q3 of this year. Notably, earnings currently stand at $2.77 million, significantly higher than the approximately $200,000 reported in the previous quarter. A sharp increase in earnings indicates that DeFi protocols built on SushiSwap are being used more actively and that revenue efficiency has improved, a factor that could boost investor sentiment toward the token and, in turn, drive further interest.
On the daily chart, SUSHI price had formed a multi-month descending triangle pattern, a technical setup typically formed by a series of lower highs converging toward a horizontal support level, indicating sustained bearish pressure.
SUSHI price has broken out of a descending triangle pattern on the daily chart — Sep. 10 | Source: crypto.news
It has invalidated the pattern today, a sign that bears are losing control and marking a bullish reversal in technical analysis. This shift in trend is further supported by a golden cross that remains in play, after the 50-day simple moving average crossed above the 200-day SMA. The last time such a crossover occurred, SUSHI rallied by as much as 120%.
Based on these bullish technicals, the path of least resistance points to a target of $1.16, a level calculated by measuring the height of the descending triangle and projecting it upward from the breakout point. This target remains nearly 47% above the current price as of press time.
However, the setup would be invalidated if SUSHI loses the $0.75 psychological support, which would open the path to further losses down to $0.70, the level marked by its 200-day moving average.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.