SushiSwap ten seconds of fame ended in bloodshed as the token tumbles to $1.00.
SushiSwap in consolidation ahead of a potential falling triangle breakout.
DeFi craze got a little dramatic last week in regards to the controversial token SushiSwap. The decentralized finance ecosystem has in the recent past unapologetically become the topic of discussion in all crypto ‘corridors.’ The market-making token, SushiSwap was at the helm of the saga, comparing to a well-orchestrated thriller movie setting.
Some publications even referred to it as “the SushiSwap rug pull,” virtually becoming the most dramatic moments in the DeFi ecosystem this 2020. After the launch of the token, late August by a pseudonymous developer, “Chef Nomi,” the prices started to rocket as if on steroids. Some analysts and crypto enthusiasts easily baptized it as the “vampire protocol.” This name was concocted because SushiSwap token was tailor-made to siphon liquidity off the competitor platform, Uniswap.
The rocketing cryptocurrency token saw it attracting more than $1 billion of collateral using a method referred to as “zombie mining.” On the other hand, the token value soared over 500 times hitting highs of $300 million in just a few days.
An interesting turn of events occurred when the community realized that “Chef Nomi” has cashed out at all-time highs, making away with 37,400 ETH, approximately $12.6 million. The token price starting to tumble calling for Sam Bankman-Fried, the current CEO of FTX cryptocurrency exchange to assume control.
At the time of writing, SushiSwap is trading at $2.35 from astronomical highs of $46 after the launch. In the last 24 hours over 18% of its value has been wiped off. The token has also lost its top ten status and currently holds at the 64th position with a market cap of $189 million.
From a technical perspective, SushuSwap is likely to remain in consolidation. However, there will be some price movements but not big enough to clear the falling triangle resistance. If the triangle resistance is broken in conjunction with the 100 SMA, the token could spike to the $3.0 level.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org