Smooth Love Potion (SLP) has fallen considerably since its Feb 10 highs. However, it has bounced at an important Fib support level and is showing early signs of a potential bullish reversal.
SLP has been moving upwards since Feb 3, when it reached a low of $0.087. The upward movement led to a high of $0.0409 on Feb 10. This amounted to an increase of 370% in slightly more than seven days.
However, the price has been falling since and has decreased by 60% over the past 13 days. This led to a low of $0.0165 on Feb 24.
Indicator readings for SLP
Daily time-frame indicators for SLP provide a very neutral reading.
While both the MACD and RSI are falling, the former is at 0 while the latter is at 50. Therefore, while the decrease is a sign of weakening momentum neither of the indicators have crossed into the bearish threshold.
However, the six-hour chart provides a more bullish outlook, since both the RSI and MACD have generated a very significant bullish divergence. This is a sign that a bounce could soon transpire.
If so, the closest resistance area would be at $0.025.
Wave count analysis
Cryptocurrency trader @TheTradingHubb tweeted a chart of SLP. stating that the token might have completed its correction.
The SLP wave count does suggest that the price has completed a five wave upward movement and an ensuing A-B-C corrective structure. The sub-wave count is given in red.
The bottom of wave C occurred at a confluence of Fib retracement levels:
- 0.786 Fib retracement support level (black)
- Length of wave A projected to C (white)
- Length of sub-wave one projected to sub-wave four (red)
These factors suggest the entire $0.015 – $0.0175 region is suitable for a bottom.
As for the longer-term count, it remains to be seen if the entire increase is part of a larger A-B-C structure (white) or the beginning of a new bullish impulse (black).
In any case, a movement towards $0.05, which would give waves A:C a 1:1 ratio seems to be likely.
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