SUSHI - Is the pain over yet?

Assets covered: Sushiswap (SUSHI)
Metrics used: Price, Daily Active Deposits, Supply on Exchanges, MVRV 30D


SUSHI price action - Sanbase

As with most of the market, SUSHI too been through a brutal May. It did bounced but failed to find strength to continue making a higher high. At the moment, most rallies are being sold into it seems and now SUSHI is at risk of trending down further (lower lows) if these levels don't hold.

Interesting to note that during May's crash, there were strong volume observed at each major dip, which may suggest some might have capitulated.

Daily Active Deposits

SUSHI Daily Active Deposits - Sanbase

The recent downtrend is seeing more people depositing SUSHI into exchanges at every bounce/rally they can get to offload. This behaviour has been consistently high since late March 2021, suggesting that huge sell pressure remains.

In the brutal late May selloff, we can also observe some capitulation happening.

Supply on Exchanges

SUSHI Supply on Exchanges - Sanbase

The inverse correlation between Price and Supply on Exchanges been pretty consistent through the year. Where we see a drop in Supply on Exchanges precedes a Rally, and vice versa.

Currently, we are seeing some spikes in Supply on Exchanges which may indicate that there's still a good amount of sell pressure out there.


SUSHI MVRV 30D - Sanbase

SUSHI's MVRV 30D reveals that holders that last moved SUSHI 30 days ago are now at an average loss of -18.79%, which puts it in the undervalued zone and poised for some relief bounce if history repeats.

Summing up

Overall, metrics are showing signs of capitulation. Sell pressure continues to linger but is starting to look exhausted.

Majority of 30D holders are in the red and there's little incentive for them to sell now.

Whether there'll be a relief rally would still largely depends on what BTC will be doing over the coming weeks.

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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