SushiSwap experienced an impressive price surge of over 80%. This surge was driven by the recent rally in the crypto market, particularly with Bitcoin’s strong performance holding above the $34,000 mark.
The primary catalyst for SushiSwap’s surge can be attributed to a significant trade that occurred on November 1st.
While there was a small dip shortly after the surge, SushiSwap’s price is currently holding steady at around $1.0.
However, some indicators, such as the Relative Strength Index (RSI), suggest that it may be approaching overbought territory. This could potentially signal a price correction in the near future.
What’s intriguing is the enthusiasm displayed by derivative traders. This sentiment is reflected in the notable increase in SushiSwap’s funding rate on Coinglass.
The funding rate experienced a sharp rise, reaching its highest level in several months at around 0.2%. Although it has since dipped, it remains in positive territory, indicating sustained trader optimism.
In terms of market dynamics, both short and long liquidations occurred as a result of these trades. However, the interesting part is that there isn’t a significant disparity between the two, suggesting a well-balanced market response to the price surge.
This balanced reaction indicates that traders and investors are not overwhelmingly biased in one direction, making the market’s response more measured.