The SXP price completed a double dip near $ 1.05.
It could have started 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 may move up soon.
The price of the SXP has been declining since August 13, when it peaked at $ 5.15. The decline continued to a low of $ 1.04 on September 24. The latter was right on the 0.85 fibonacci level of the retracement, or $ 1.20. Since then, the price has returned to this level and is on the rise.
On October 7, the price fell back to $ 1.07, creating a double dip pattern, before starting the current upward movement.
Cryptocurrency trader @devchart shared an SXP chart showing the double dip pattern. Since his tweet, the price has confirmed this pattern and has started to rise.
Daily data technical indicators are bullish. The MACD is on the rise, although it has yet to reach positive territory. The RSI generated bullish divergences and the Stochastic Oscillator formed a bullish cross.
Additionally, while the slope is unclear due to many long wicks, it looks like price has breached a descending resistance line.
All of these signs indicate that the SXP should go up
In this case, the next closest resistance zone should be at $ 2.61, which is the 0.382 fibonacci level of the entire decline, as well as an old support zone. The next area of resistance is found at $ 3.58.
Looking at the movement of the SXP since July shows a full bullish impulse, followed by a correction in WXY (in black below). The sub-wave count is shown in blue.
If the count is correct, the aforementioned low of September 24, which corresponds to the 1st part of the double-dip pattern, thus marked the end of the corrective movement, and the start of a new upward movement.
Further observation reveals a possibly finalized 1-2 wave formation. Waves 3-4-5 are expected to follow which may take price to the aforementioned resistance at $ 2.61 and beyond.
A decline below the low to $ 1.06 on October 7 would reject this account of waves.