Swipe (SXP) Sees Crucial Bullish Divergences Building up

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It is pos­si­ble that the Swipe (SXP) cor­rec­tion that has been going on since May has come to an end. A break­out from the cur­rent pat­tern would con­firm this possibility.

SXP has been decreas­ing along­side a descend­ing resis­tance line since reach­ing an all-time high price of $5.87 on May 3. So far, the line has reject­ed SXP four times, most recent­ly on Jan 2 (red icons). The rejec­tion led to a low of $1.11 on Jan 24. 

SXP has been mov­ing upwards since and is cur­rent­ly trad­ing inside the $1.45 hor­i­zon­tal area. This is a cru­cial area that act­ed as sup­port since May 2021. There­fore, its reclaim would be a very impor­tant devel­op­ment, since it would ren­der the pre­vi­ous break­down as only a devi­a­tion. This would also like­ly lead to a break­out above the afore­men­tioned descend­ing resis­tance line.

SXP Resistance
Chart By TradingView

Potential SXP breakout

Tech­ni­cal indi­ca­tors in the dai­ly time-frame are bull­ish. This is espe­cial­ly evi­dent in the con­sid­er­able bull­ish diver­gence that has devel­oped in both the RSI and MACD. Such sig­nif­i­cant diver­gences very often pre­cede upward movements. 

There­fore, both indi­ca­tors sug­gest that an even­tu­al break­out from this descend­ing resis­tance line is likely.

The main resis­tance lev­els are found at $2.95 and $4.05. These are the 0.382 and 0.618 Fib retrace­ment resis­tance lev­els, respectively.

SXP Breakout
Chart By TradingView

The two-hour chart also shows that SXP has bro­ken out from the $1.38 hor­i­zon­tal area. This area is now expect­ed to pro­vide sup­port in the future.

Short-term SXP
Chart By TradingView

Wave count analysis

The most like­ly count does sug­gest that SXP is cor­rect­ing inside a large A‑B-C struc­ture. If so, it is near­ing the end or has com­plet­ed the C wave, which has tak­en the shape of an end­ing diagonal.

The fact that SXP has swept the May 13 lows (red line) fur­ther sup­ports this pos­si­bil­i­ty. A break­out from the wedge would con­firm that the cor­rec­tion is complete

Wave count
Chart By TradingView

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Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

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