Swipe (SXP) Double-Bottom Could Lead to Upward Push

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In Brief
  • SXP has completed a double-bottom near $1.05.

  • The price has possibly begun a bullish impulse.

  • There is resistance at $2.61.

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Swipe (SXP) has created a bullish reversal pattern and is showing signs that it will move upwards in the near future.

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The SXP price has been decreasing since Aug 13, when it reached a high of $5.15. The decrease continued until a low of $1.04 was reached on Sept 24. This was just slightly below the 0.85 Fib retracement level of $1.20, which has since been reclaimed. Since then, the price has been increasing.

 SXP Double-Bottom

On Oct 7, the price returned to $1.07, created a double bottom pattern, and began the current upward movement.

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SXP Chart By TradingView

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.

Source: Twitter

Gunning for Gains

Technical 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.

SXP Chart By TradingView

Wave Count

A 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.

SXP Chart By TradingView

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.

SXP Chart By TradingView

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.

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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.

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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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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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