See More

SXP’s Reclaim of Lost Support Area Is Bullish for Its Long-Term Trend

2 mins
Updated by Ryan Smith
Join our Trading Community on Telegram

In Brief

  • SXP has reclaimed the $1.50 support area.
  • SXP has broken out from a descending resistance line.
  • The price has possibly completed an A-B-C formation.
  • promo

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

On 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.
SXP Support Breakdown
SXP Chart By TradingView

Short-Term Movement

Cryptocurrency trader @CryptoNewton outlined an SXP chart, stating that he has entered a long and expects the price to continue moving upwards.
SXP Movement
Source: Twitter
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.
SXP Resistance Breakout
SXP Chart By TradingView

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).
SXP Wave Count
SXP Chart By TradingView
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.
SXP Bearish Impulse
SXP Chart By TradingView
To conclude, the SXP price has possibly completed its correction and is now likely to continue moving upwards towards the resistance areas outlined above. For BeInCrypto’s Bitcoin analysis, click here!
Top crypto platforms in the US | April 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

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. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored