Altcoin SXP is ready for growth after forming a double bottom

Altcoin Swipe (SXP) has formed a bullish reversal pattern and signals readiness for growth in the short term.

Double bottom

The SXP rate has been declining since August 13, when the price reached a high of $5.15. The fall continued to a low of $1.04, marked on September 24, which passes only slightly below the 0.85% Fibonacci retracement level at $1.20. Since then, the altcoin has been rising.

On October 7, the price returned to the $1.07 mark, formed a double bottom and began the current upward movement.

SXP chart from TradingView

Cryptocurrency Trader @devchart I shared on Twitter the SXP chart, which shows a pattern with a double bottom. Since the tweet was published, the price has already confirmed this pattern and started to grow.

Source: Twitter

When will the uptrend start

Technical indicators on the daily charts indicate a bullish picture. The MACD is rising, although it has not yet reached positive territory. The RSI signals a bullish divergence, and the stochastic oscillator has formed a bullish intersection.

In addition, due to the numerous long wicks, it seems that the price has broken through the descending resistance line.

All this speaks in favor of the altcoin’s readiness for growth.

If so, the nearest resistance is expected at $2.61, where the 0.382% Fibonacci retracement level passes relative to the bearish move and the previous support level. The next resistance is at $3.58.

SXP chart from TradingView

Wave analysis

The dynamics of SXP since July shows that the price has completed an impulsive bullish correction in the form of W-X-Y (black color on the chart). The subwaves are shown in blue on the graph.

According to the wave analysis, the aforementioned low of September 24, which served as the first bottom of the double-bottom pattern, marked the end of the corrective move and the beginning of a new upward movement.

SXP chart from TradingView

Also, a more thorough analysis shows that the price has completed the formation of waves 1-2, followed by waves 3-4-5, as a result of which the quotes will go to the previously mentioned resistance of $2.61 and beyond.

If it falls below the October 7 low of $1.06, this wave analysis will lose its relevance.

SXP chart from TradingView

So, SXP has formed a double bottom, and may have already started to grow, during which the altcoin should reach the above resistance levels.

Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinions expressed in this forward-looking statement do not reflect those of the BeInCrypto editorial board.

Disclaimer


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