SXP Double-BottomOn Oct 7, the price returned to $1.07, created a double bottom pattern, and began the current upward movement. Cryptocurrency trader @devchart outlined an SXP chart which shows the double-bottom pattern. Since the tweet, the price has confirmed the pattern and began to move upwards.
Gunning for GainsTechnical indicators in the daily time-frame are bullish. The MACD is increasing, even though it has not reached positive territory yet. The RSI has generated bullish divergence and the Stochastic Oscillator has made a bullish cross. In addition, while its slope is not certain due to numerous long wicks, it seems that the price has broken out from a descending resistance line. These are all signs that SXP is expected to move upwards. If it does, the next closest resistance area would likely be found at $2.61, the 0.382 Fib level of the entire decrease, and a previous support area. The next resistance area beyond that is found at $3.58.
Wave CountA look at the SXP movement since July reveals a completed bullish impulse and complex W-X-Y correction afterward (shown in black below). The sub-wave count is shown in blue. If the count is correct, the aforementioned Sept 24 low, which made the first portion of the double-bottom pattern, marked the end of the corrective movement and the beginning of a new upward move. A closer look reveals a possibly completed 1-2 wave formation. Waves 3-4-5 would customarily follow afterward, which could take the price towards the previously mentioned $2.61 resistance area and beyond. A decrease below the Oct 7 low of $1.06 would invalidate this particular wave count. To conclude, the SXP price has created a double-bottom pattern and possibly began a bullish impulse, which could take it towards higher resistance areas. For BeInCrypto’s latest Bitcoin analysis, click here! 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.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.