Swipe (SXP) is in the process of reclaiming a support level that has been in place since the beginning of the year.
If Swipe manages to reclaim this level, it would be an extremely bullish development that could likely lead to a new all-time high in the process.
Swipe trading range
Cryptocurrency trader @PostyXBT outlined an SXP chart, stating that if the resistance area of the current range is reclaimed, a significant upward movement could follow.
The resistance area is found at $4.05. While the token initially validated this level as support, it has since fallen back below it.
An interesting development is an ascending support line that has been formed since Jan. 22. SXP has validated this support four times since but broke down below it on April 22.
However, it’s now in the process of reclaiming this level. If successful, it would be an extremely bullish development.
Technical indicators are turning bullish but have not confirmed a reversal yet.
Therefore, SXP is at a crucial point that could determine the direction of its future trend. Reclaiming this zone along with the support line would also turn indicators bullish.
Wave count
The wave count for SXP is not entirely clear. The most likely scenario is that the entire movement since Feb. 16 has formed a corrective structure. In this case, it appears to be a running flat correction. This would mean that SXP has now begun an extended wave three.
If so, the first resistance area would be found at $7.80, but the token would be expected to break out and increase higher.
SXP/BTC
Similar to its USD counterpart, technical indicators in the daily time frame do not confirm a bullish trend reversal, even though there are bullish signs present.
SXP has reclaimed the 6,750 satoshi area. As long as it is trading above this level, it’s likely to increase towards the next resistance at 10,500 satoshis.
Conclusion
Swipe is in the process of reclaiming a crucial horizontal and diagonal level. Doing so would confirm that the trend is bullish, likely paving the way for a new all-time high price in the process.
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