SushiSwap (SUSHI) price regained the $1.15 level on November 2 but fell below $0.92 a week later. On-chain data trends examine how investors may react as SUSHI breaks the $1 barrier on Friday.
Over the past week, the price of Sushi has remained in a sideways movement between $1 and $0.90. Will investors take profits or continue to HODL in the hope of future returns?
Investors are making record transfers this week
SUSHI, SushiSwap’s native token, has gained upward momentum over the past month with a significant partnership and positive price movements. Similar tokens such as PancakeSwap (CAKE) and Uniswap (UNI) have also experienced a significant increase with the recovery of the crypto market and the expansion of liquidity across Decentralized Exchanges (DEXs).
But as the crypto market enters a consolidation phase this week, on-chain movements suggest that most SUSHI investors are looking to exit. Glassnode chart shows that SUSHI holders made 226 Exchange Deposit transactions on November 16.
The Exchange Deposits metric tracks the flow of daily unique transactions from cold storages to crypto exchange wallets. Generally, an increase in Exchange Deposits indicates that investors are transferring tokens to crypto trading platforms, possibly aiming to take advantage of short-term profit opportunities.
Historical data shows that when token investors tend to sell, prices often fall in the following days. This phenomenon was observed on June 11, August 17, and more recently on November 2.
If this pattern repeats, token holders can expect a price correction in the coming days.
Sellers surround spot markets
Aggregate data obtained from crypto exchanges’ order books further reinforced the above-mentioned view that SUSHI is under selling pressure. According to aggregate data collected by IntoTheBlock from 10 exchanges, including Binance and Coinbase, crypto investors have currently sold 13.7 million SUSHI.
According to the chart, 13.7 million sell orders exceeded the 10.8 million token buy orders currently listed.
Currently, the total SUSHI market demand is 3.1 million SUSHI, which is lower than the market supply. So if sellers start competing by lowering prices to fill orders faster, SUSHI will likely pull back.
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