The Swipe (SXP) price has broken down and subsequently reclaimed a critical support level at $1.55.
As long as the price is trading above here, it should continue moving upwards.
Reclaim of Support
SponsoredOn Aug 13, the SXP price reached a high of $5.15 and began a downward move that is still ongoing. The price reached a low of $1.48 on Sept 14 and began to rise.
While it initially seemed like the price had broken down from the $1.55 support area, it proceeded to move upwards and reclaim the previously lost support level. Deviations below a support area and their subsequent reclaim often lead to a significant move in the other direction.
If the price continues moving upwards, the closest resistance area would be found at $3.10, the 0.5 Fib level of the entire previous decline.
Short-Term Movement
SponsoredCryptocurrency trader @CryptoNewton outlined an SXP chart, stating that he has entered a long and expects the price to continue moving upwards.
While the price has indeed broken out from a descending resistance line, the price was rejected at the $1.90 resistance area and is in the process of creating a double top, known as a bearish reversal pattern.
In addition, both the RSI and the MACD have formed bearish divergence. This signifies that the price is likely to fall initially, possibly towards $1.30, before making another attempt at breaking out.
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Wave Count
As for the wave count, it seems that SXP has completed an A-B-C corrective structure (in black below) with its previously mentioned low of $1.48 on Sept 14. Waves A:C have a 1:1 ratio, and a bearish impulse can be outlined in the C wave (blue), making this likely to be the correct wave count.
If so, then SXP has begun an upward move since Sept 14 (highlighted).
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A closer look shows that the rally looks impulsive and will take it at least to the $3.10 resistance area outlined in the first section.
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To conclude, the SXP price has possibly completed its correction and is now likely to continue moving upwards towards the resistance areas outlined above.
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