Smooth Love Potion (SLP) has been increasing rapidly in February, giving off the impression that the price has potentially begun a new bullish impulse.
On Feb. 3, SLP reached a new all-time low of $0.087. Afterwards, it bounced considerably and proceeded to reach a high of $0.0409 on Feb. 10. This amounted to an increase of 362% from the aforementioned all-time low price.
However, the price created a long upper wick and has been decreasing since. So far, it has fallen by 23.63%.
Ongoing upward movement
The rapid upward movement has also caused a significant increase in technical indicators for SLP.
This is especially evident in the RSI, which quickly moved from oversold to overbought territory in roughly two weeks. The RSI is a momentum indicator, and this rapid increase is a sign that bulls are gaining strength.
Similarly, the MACD has greatly accelerated its rate of increase, even though it is not yet positive. Both of these are considered bullish signs.
While SLP was rejected by the $0.039 resistance, this is only a horizontal resistance area. There is stronger resistance at $0.058, created by both a horizontal and a Fib resistance level.
SLP wave count analysis
Cryptocurrency trader @TheTradingHubb tweeted a chart of SLP, stating that the token has begun a new bullish impulse.
The ongoing increase does look like a completed five wave upward movement, in which the fifth wave extended. The high was made very close to the 1.61 length of waves 1-3, which is common in fifth wave extensions.
As a result, a corrective period seems likely. If the ongoing drop continues, the closest support would be at $0.028 and $0.0248. These are the 0.382 and 0.5 Fib retracement support levels, respectively.
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