- SushiSwap price has pulled after last week's sharp rally.
- The new head chef was accused of running several scams since 2012.
SushiSwap price tumbled to the lowest level since October 5th of this year as concerns about the network continued. SUSHI crashed to a low of $1.2000, which was about 13% below the highest level this month. The token’s market cap has fallen to about $157 million.
Is SUSHI a good buy?
SushiSwap is one of the oldest platforms in the Decentralized Finance (DeFi) industry. It is a platform that is similar to Uniswap and PancakeSwap in that it makes it possible for people to swap tokens and earn fee by providing liquidity.
SushiSwap exists across various chains like Ethereum, Arbitrum, Polygon, Harmony, Avalanche, and Fantom among others. As a result, it offers a cross-chain swaping mechanism that makes it possible for one to swap tokens across chains.
At its peak, Sushi was one of the biggest players in the industry. However, in the past few months, infighting among the community has pushed more people away from the network. It has also led to increased turnover among top developers. For example, OxMaki left the CEO role in September last year while Joseph Delong left for Astaria.
As a result, the total value locked (TVL) in the ecosystem has crashed from more than $6 billion to less than $500 million. Activity in the network has also declined sharply in the past few months, with daily trading volume falling below $15 million.
SushiSwap price bounced back last week as the community members voted for the new head chef or chief executive officer. Jared Grey pledged to reinvigorate growth in the ecosystem by pledging to making it a leading DEX once again.
SUSHI price crashed after Jared was accused of being a con artist. In a series of tweets, a user by the name YannickCrypto accused him of scamming people through his company, MultiPlex PC. He was also accused of scamming him through another company, ALQO. Jared has denied these allegations.
SushiSwap price prediction
The four-hour chart shows that SUSHI did well last week after the community voted for the new head chef. This rebound was short-lived as the coin nosedived this week. It has moved below the 25-day and 50-day moving averages. The decline happened after the coin rose to the upper side of the cup and handle pattern at $1.3775.
Therefore, since the cup and handle (C&H) is a bullish pattern, a bullish comeback cannot be ruled out. This view will become invalid if it manages to move below the support at $1.1425.
