The price of SushiSwap (SUSHI) recovered to the $1.15 level on November 2 but dropped below $0.92 a week later. On-chain data trends examine how investors may react if SUSHI breaks the $1 barrier on Friday.

Over the past week, the price of Sushi has remained sideways between $1 and $0.90. Will investors book profits or continue to HODL in anticipation of future returns?

Investors are making record transfers this week

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SUSHI, the native token of SushiSwap, has gained upward momentum over the past month with a significant partnership and positive price movements. Similar tokens like PancakeSwap (CAKE) and Uniswap (UNI) have also experienced significant growth with the recovery of the crypto market and the expansion of liquidity in decentralized exchanges (DEXs).

But as the crypto market enters a consolidation phase this week, on-chain activities suggest that most SUSHI investors are looking to exit. Glassnode charts show that SUSHI holders made 226 exchange deposit transactions on November 16.

The exchange deposits metric tracks the flow of daily unique transactions from cold storage to crypto exchange wallets. Generally, an increase in exchange deposits indicates that investors are transferring tokens to crypto trading platforms, possibly with the aim of taking advantage of short-term profit opportunities.

Historical data shows that when token investors tend to sell, prices often fall in the following days. This phenomenon was observed on June 11, August 17 and most recently on November 2.

If this pattern is repeated, token holders can expect a price correction in the coming days.

Sellers corner spot markets

Aggregate data obtained from the order books of crypto exchanges further reinforced the above view that SUSHI is under selling pressure. According to aggregate data collected by IntoTheBlock from 10 exchanges including Binance and Coinbase, crypto investors have currently sold 13.7 million SUSHI.

According to the chart, the 13.7 million sell orders outweigh the buy orders for the 10.8 million tokens currently listed.

Currently, the total demand of the sushi market is 3.1 million sushi, which is less than the market supply. So if sellers start competing by lowering prices to fill orders faster, SUSHI will likely step back.

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