SushiSwap’s governance cryptocurrency, SUSHI, outperformed Bitcoin ahead of the opening bell in New York on Tuesday.
The decentralized financial stock rose more than 15 percent during the European session, hitting an intraday high of 1.9471. Traders flocked to the SushiSwap market despite a fatal flaw in the log, a security flaw that eventually resulted in about $ 10,000-15,000 being deducted from fee income.
Post-mortem, when I woke up so far, the exploiter got roughly 10-15,000 from Sushiswap’s 0.05% fee cut.
LP – xSushi holders are safe!
More soon! https://t.co/QmhNMTP28L
– 0xMaki Gen Yoshitsune (@ 0xMaki) November 29, 2020
The SushiSwap team fixed the problem and decided to compensate the parties affected by the error.
SUSHI demand is increasing
The small losses could not deter traders from increasing the exposure of their portfolios to SUSHI. Instead, they focused more on the prospects of SushiSwap’s recent partnership with Yearn Finance, one of the leading decentralized revenue aggregators in the DeFi space.
On Tuesday morning, Yearn Finance inventor Andre Cronje detailed the specifics of what he called “one of the more aggressive synergies” with SushiSwap. The well-known developer stated that Yearn Finance would expand SushiSwap’s automated market maker system by pooling development resources.
A spate of joint programs would bring more capital to their liquidity pools, noted Cronje, adding that “Yearn will participate in sushi governance and add some SUSHI to its treasury.”
The SUSHI / USD exchange rate began to get Mr Cronje’s statements going.
SushiSwap is up more than 300 percent from its November 4 low of $0.4743. Source: SUSHIUSD on TradingView.com
Maple Lead Investments, an EOS-backed strategist, said the SUSHI price could reach $ 4 to $ 10 after its protocol’s alliance with Yearn Finance.
Technically, SUSHI acts within an ascending channel formation, which is indicated by a retreat on every resistance test and a rebound on every support line test. However, the price increase coincides with a decrease in volume and shows a decreasing divergence in the game.
This somewhat increases the possibility of a short-term withdrawal. If SUSHI / USD re-tests channel support, traders may be able to open new short entries with a primary downside target lurking near channel resistance. Meanwhile, an extended correction could push the pair to a range of $ 0.71-0.84.
Conversely, a breakout above the ascending channel area could cause traders to open long entries towards $ 1.91, $ 2.16, $ 2.63, etc. (depending on their risk strategies). If the ongoing Bitcoin rally stays below $ 20,000, it could also increase the opportunity for SUSHI to attempt a push towards $ 2.16 as its primary upside target.
All levels have historical significance as supports and resistances.