Swipe (SXP) bounces off long-term support after falling sharply

The Swipe (SXP) risks falling below the $ 1.50 horizontal support area as each rebound is weaker than the last.

Long term support

The SXP has been bearish since hitting an all-time high on May 3rd along with a descending resistance line. The last time this happened was on December 4th, creating a very long lower wick. This is seen as a sign of pressure to buy.

On Jan 2nd, the SXP hit a high of $ 2.35, which is 85% above the aforementioned low.

However, the token failed to break above the descending resistance line and is again approaching the horizontal support area of ​​$ 1.50. The fact is that each jump is weaker than the last and is a bearish sign. This suggests that the problem may appear soon.

BTC / USDT daily chart | Source: TradingView

Technical indicators

The technical indicators are giving a bearish signal.

The MACD, formed by the short and long-term moving averages (MA), is falling and is in negative territory. Although it had previously started an uptrend, the trend has been bearish for the past three days. This means that the short term MA is slower than the long term MA and is a bearish sign.

The RSI, a momentum indicator, has fallen below 50 (red symbol). This is also a bearish sign that supports the possibility of a breakdown.

BTC / USDT daily chart | Source: TradingView

If it does break, the next area of ​​support is at $ 0.75, near the January 2021 low.

BTC / USDT 2-day chart | Source: TradingView

Count waves

Trader @ Mesawine1 tweeted an SXP chart saying that the uptrend is likely to resume after a short-term correction.

The source: Twitter

However, since the tweet, SXP has fallen below the $ 1.80 mark and the top of wave 1 (red line). Thus, the possibility that the upward movement is the beginning of an upward pulse is negated.

Additionally, it supports the possibility of the SXP eventually falling below the $ 1.50 horizontal support area.

BTC / USDT 2-hour chart | Source: TradingView

You can see the SXP prices here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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