Swipe (SXP) Finally Bounces – Has It Reached a Bottom?
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The Swipe (SXP) price has increased significantly over the past week, after bouncing at an important support level.
The price has possibly completed a bearish impulse, confirming it with a breakout from a descending resistance line. SXP should continue moving upwards towards the resistance levels outlined below.
Swipe’s Trading Range
The SXP price has been moving downwards since reaching a high of $5.15 on Aug 13. On Nov 3, it reached a low of $0.69 and reversed its trend shortly afterward. The price has increased by more than 30% since then.
It’s interesting to note that the low was significantly below the final Fib support level (0.856), which is found at $1.20. On the contrary, this level is now acting as resistance after rejecting the price on Nov 8 and leaving behind a long upper wick.
The Price Finally Breaks Out
The shorter-term 6-hour chart shows that the price has already broken out from a descending resistance line. While the upward move did not continue for long, since the 0.382 Fib level rejected the price, SXP is attempting to create a higher low before moving upwards.
Technical indicators support this potential rise since the RSI is above 50, and the MACD signal line is above 0.
Even on the daily time-frame, technical indicators are in the process of turning bullish, demonstrated by the MACD histogram, which has made its first positive bar.
Since the Stochastic Oscillator is in the process of making a bullish cross and the RSI is attempting to move above 50, a continued price rally would cause both of these to occur, confirming the bullish trend.
SXP’s Future Movement
Cryptocurrency trader @TradySlim stated that he is long SXP if the current support level holds at $0.97.
Since the tweet, the price initially made a slightly lower low but has since reclaimed the level. The price movement is interesting since the decline looks like a completed A-B-C corrective structure (shown in black below), which likely completed wave 4 (blue) of a five-wave formation.
The wave 4 low took place in what is called a 4th wave pullback. A likely target for the top of wave 5 is found near $1.35, given by projecting the height of waves 1 – 3 to wave 4 and by using an external retracement on wave 4 (1.61).
The formation would be invalidated by a fall below the wave 1 high at $0.81.
A longer-term view shows that it’s likely that SXP completed a bearish impulse beginning with the previous Aug 13 high. If correct, SXP will now retrace due to the decline, with the first major resistance level found at $2.37, the 0.382 Fib level of the entire downward move.
A decline below the Nov 3 low of $0.69 would invalidate this particular wave count.
Conclusion
It looks likely that the SXP price has completed a bearish impulse and has begun to retrace. The price is expected to reach at least one of the targets given above.
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Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.
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