<\/p>\n
- \n
- SushiSwap\u2019s trading volumes jumped by a whopping 569% in 24 hours.<\/em><\/li>\n
- On-chain activity fueled suspicion of market manipulation.<\/em><\/li>\n<\/ul>\n
Native token of decentralized exchange (DEX) SushiSwap [SUSHI]<\/a> stunned the crypto market with gains of more than 20% in the last 24 hours, according to CoinMarketCap<\/a>. At press time, the token exchanged hands at $0.7865, the highest in nearly five months.<\/p>\n
\nRealistic or not,\u00a0here\u2019s SUSHI\u2019s market cap in BTC\u2019s terms<\/a><\/p>\n
\nSigns of something fishy?<\/h4>\n
As prices skyrocketed, traders scrambled to get their hands on the token. Frantic buying and selling ensued as trading volumes jumped by a whopping 569% in the 24-hour period.<\/p>\n
While market participants cheered the development, such dramatic rises in prices tend to cause suspicion. Popular on-chain activity tracker Lookonchain<\/a> expressed a similar sentiment, flagging concerns of market manipulation.<\/p>\n
The analytics firm stated that a new entrant to the market bought a ton of SUSHI tokens, more than 900,000, from decentralized exchanges.<\/p>\n
Shortly after, they started transferring USD Coin [USDC]<\/a> to decentralized derivatives exchange dYdX [DYDX]<\/a> using multiple new wallets. Lookonchain suggested that the objective of the wallet could be to artificially inflate the price of SUSHI and go long.<\/p>\n
Indeed, the number of long accounts exceeded the short accounts on 31 October, reflecting dominance of bullish leveraged traders.<\/p>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/11\/Longs-and-Shorts-new.jpg\")
<\/a><\/p>\nSource: Coinglass<\/p>\n<\/div>\n
Should SUSHI traders watch out?<\/h4>\n
Typically, influential players employ this technique of creating a buying frenzy that will \u201cpump\u201d up the price of a stock. Once the prices are sufficiently pumped, these holders start dumping their assets at a profit.<\/p>\n
This sends the price of the asset tumbling, and new investors are stuck with a low-value asset.<\/p>\n
While there was no concrete evidence to fit the above scenario in SUSHI\u2019s context, investors should exercise caution and DYOR. It was normal for profit-hungry traders to get carried away by these events, especially in a bear market.<\/p>\n
\nHow much are\u00a01,10,100 SUSHIs worth today<\/a>?<\/p>\n
\nHowever, a sharp price correction could undo all their gains.<\/p>\n
- On-chain activity fueled suspicion of market manipulation.<\/em><\/li>\n<\/ul>\n