SushiSwap posted a 200% revenge rally despite being called an “exit scam” multiple times now as reported in the recent altcoin news.
In early September, the SushiSwap co-founder known as “Chef Nomi” liquidated his SUSHI holdings. His move resulted in a 75 percent drop in the SushiSwap government token rate with many thinking that he dumped the DEX project in the community’s hands. Between then and now, the SUSHI/USD exchange rate dropped by 96% but the pair even started witnessing a new wave of capital injection. The pair surged by about 205 percent and is now trading at $1.44.
1/ Some of you are wondering why $SUSHI has been pumping.
Sushiswap? Wasn’t that the dead $UNI fork that got hacked by the founder 2 months ago?
Surprisingly, $SUSHI never left. Instead – it has silently been building in the background.
Let me break it down for you
— Wangarian (@Wangarian1) November 15, 2020
The reason why SUSHI had a rally recently is still unclear. Some analysts believe that it surged because of Uniswap. The rival DEX and its prominent liquidity mining program is coming on tomorrow, November 17th. It was launched alongside UNI which is the UniSwap governance token in order to fight the DEX competitors’ growth like SushiSwap in this case. As the program comes to an end, the liquidity pool of Uniswap will release a cluster of stablecoins into the market. some of the capital will end up in the SushiSwap pool which will increase the SUSHI spot rate upwards.
In the meantime, other factors are striving to claim the credits for the recent move of SUSHI since SushiSwap posted a 200% revenge rally, concerning the developments for other DEX protocols. The major upgrades in recent weeks promise to make it a unique decentralized exchanges. The developments also include methods to eliminate further losses from happening with the native limit order feature and the decentralized borrowing platform. The analysts think that the new upgraded SushiSwap will improve the SUSHI value proposition which is why it rallies:
“SushiSwap’s dark horse narrative comprises 3 main elements: Market proven product yielding stable cashflow, Product releases with strong USP factor, and Near term catalyst. Together, they construct a powerful narrative for Sushiswap’s recovery – and why it’s far from over.”
SUSHI’s latest upside came alongside the recovery for the rest of the DeFi space. It pushed higher despite the uncertainties with the US Presidential election where Bitcoin was seen as a safe-haven asset. Technically, Sushi’s gains seemed as a pump that will wait for a retracement. According to Michael Van De Poppe, the market analyst, SUSHI has a chance of falling back below $1. The chars show that the token is retracing lower as it targeted the first area of interest for fast bounce play. However, more moves to the downside will leave SUSHI at risk of crashing to $0.923.
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