Cryptocurrency Swipe (SXP) continues to decline from Aug 13 highs and is approaching important support that could serve as a springboard for a reversal. Technical indicators speak in favor of this scenario.
Rollback to support
The SXP is down from its $5.15 high reached on Aug 13. The quotes are now approaching strong support of $1.30, which marks the beginning of the bullish engulfing candlestick pattern from July 19, followed by long lower wicks.
Apart from the fact that the price is approaching an important support level, technical indicators on the daily chart paint a bullish picture.
• MACD is moving north and is giving signals for a bullish reversal.
• Stochastic RSI has formed a bullish crossover and is moving north.
• RSI is giving signals of bullish divergence.
Thus, in a short time, the altcoin may complete the rollback and begin to grow.
Cryptocurrency trader @ Traderx0x0 notes that the SXP has not yet completed its correction, which suggests reaching the target at $1.20 with a subsequent possible reversal.
On the short-term charts, it can be seen that the altcoin has broken through the downward resistance line (dashed line on the charts) and the price is following another upward support line.
As long as the coin is above this support line, the likelihood of continued growth is high. A bullish breakout and a subsequent retest of the $2.15 support zone would significantly reduce the likelihood of reaching $1.30 support.
On July 8, the cryptocurrency started forming an impulsive bullish wave structure (highlighted in black on the chart), which ended at the aforementioned August 13 high. Since then, the SXP has been correcting downward.
It should be noted that the price reached the level of 0.786% Fibonacci retracement relative to the entire retracement of $1.50.
The shorter-term charts show that the price is inside the A-B-C corrective figure (black on the chart). The length of wave C coincides with the 0.618% retracement level relative to wave A.
These signals, combined with bullish daily technical indicators and shorter-term wave structure (blue on the chart), suggest that the SXP has completed its correction and is ready to rise.
So, the SXP may have completed its correction and will resume its growth soon.