The Swipe (SXP) price shot up by nearly 250% over the past ten days.
However, it has reached an important resistance area and the upward trend is showing weakness, indicating that a retracement could occur.
SXP Goes Parabolic
The SXP daily chart shows a parabolic increase that started on July 13. It reached the 22,000 satoshi resistance area before creating a long upper-wick and has corrected 23% back to 16,700 satoshis.
The daily RSI is overbought but has not generated any bearish divergence yet. This suggests that the price may continue increasing. If it does, the next closest resistance area is found at 26,000 satoshis.
Cryptocurrency trader @Bitcoin_Whales tweeted a Swipe (SXP) chart, giving a target of 50,000 satoshis for the top of the upcoming movement, which would make for a new all-time high. This is certainly possible, but SXP first has to clear the two aforementioned resistance areas.
The two-hour chart shows a bearish engulfing candlestick with high volume. In addition, the candle is succeeding a bearish Doji candle that also transpired with high volume. When volume is higher during price decreases during an uptrend, it is normally a sign that the trend is losing strength, and a reversal is near.
Finally, the bearish divergence in the RSI is another sign of a possible reversal.
If the price decreases, the most likely area to revisit would be between the 0.5 and 0.618 Fib levels, at 12,000-14,000 satoshis. If this does happen, we would be looking for the creation of any bullish patterns, such as a descending wedge or double-bottom.
To conclude, the SXP price has been quickly accelerating upward over the past week. While the long-term trend is still strong, there are short-term signs of weakness that indicate a retracement could transpire before SXP continues any upward movement.
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