The market's current outlook for SushiSwap (Sushi) is on the verge of a potential liquidity grab within the 0.50-0.59 price level range. In other words, the market is poised to trigger a selling or buying spree within this range, which could lead to a significant price movement in the near future.
The chart for SushiSwap currently exhibits a very unappealing trend, leaning toward the bearish side. This suggests that the market sentiment is pessimistic, with more investors betting on the price to fall rather than rise. Bearish trends are typically characterized by lower highs and lower lows, indicating a downtrend in the price. This condition is not favorable for those who are long on the cryptocurrency.
However, it's important to remember that these trends don't immediately translate into action. The market still awaits the breakdown of this bearish pattern. A breakdown occurs when the price of an asset falls below a support level, often a significant psychological level, confirming the bearish trend. This is a critical phase as it provides a more solid foundation for a bearish market prediction.
Once this bearish pattern is confirmed with a breakdown, that's when we might consider a more aggressive short position. Shorting, or betting that the price will go down, can be a risky strategy, but it can also be profitable if the market continues in the anticipated direction.
In this context, we have set three target prices (TP) which are points where we may consider closing our positions to capture profits or limit losses. The first target price (TP1) is at 0.70, indicating that if the price were to rebound to this level, we might consider closing our positions. This would protect against the risk of the market reversing its bearish trend.
The second target price (TP2) is at 0.59. This is in line with the initial range we discussed, and if the price hits this level, it's a sign that the market is moving as expected, and we could consider taking some profit off the table.
Lastly, the third target price (TP3) is at 0.49. If the price reaches this level, it would be a strong indication that the bearish trend is fully in play. At this point, we could consider closing the rest of our short positions to capture the maximum potential profit from this trade. But again, it's critical to monitor the market conditions closely and adjust strategies as needed.