DeFiLlama announced on January 24th that the trading volume of SushiSwap [SUSHI] on Arbitrum was constantly increasing. According to the tweet, 44.6% of total SushiSwap trade volume occurred on Arbitrum on January 23.
Aside from trading activity, SUSHI’s price has risen in the recent week. SUSHI gained more than 6% in a week and was trading at $1.36 with a market capitalization of more than $303 million at the time of writing.
While these reports appeared to be upbeat, market indicators suggested a different reality.
A glance at SUSHI’s daily chart suggested that a trend reversal was possible, as some of them were bearish. Following a fall, the Money Flow Index (MFI) moved sideways. SUSHI’s Chaikin Money Flow (CMF) followed in the footsteps of MFI.
Furthermore, the Relative Strength Index (RSI) entered the overbought zone, increasing the likelihood of a price decrease in the days ahead. Nonetheless, the Exponential Moving Average (EMA) Ribbon suggested that the uptrend would continue.
Surprisingly, the on-chain metrics backed up the positive attitude, as they favoured SUSHI. Net deposits on exchanges were low in comparison to the seven-day average, indicating weaker selling pressure.
According to Santiment’s data, SUSHI was in demand in the derivatives market, as its DyDx financing rate increased. SUSHI’s MVRV ratio increased significantly as well, which appeared positive. Furthermore, SushiSwap’s development activity has surged in the last seven days, indicating that the developers’ attempts to strengthen the network have improved.
