Smooth Love Potion (SLP) up 362% from below, will the rally continue?

Smooth Love Potion (SLP) has surged higher in February, giving the impression that the price is likely to start a fresh bullish impulse.

Impressive increase

On February 3rd, the SLP hit a new all-time low of $0.087. It then rallied significantly to peak at $0.0409 on February 10th. This move marks a 362% surge from the aforementioned all-time low.

However, the price created a long wick up and has since declined. So far, it’s down 23.63%.

Daily SLP/USDT Chart | Source: TradingView

Upward movement in progress

The rapid upward movement also caused SLP technical indicators to rise significantly.

This is particularly evident on the RSI, which moves rapidly from oversold to overbought territory in about two weeks. The RSI is a momentum indicator and this rapid rise is a sign that the bulls are gaining strength.

Likewise, the MACD has accelerated its rise, although it has not yet entered positive territory. Both are considered bullish signs.

While the SLP is rejected by the $0.039 resistance, it is just a horizontal resistance area. There is stronger resistance at $0.058 created by both the horizontal and Fib resistance levels.

Daily SLP/USDT Chart | Source: TradingView

Count waves

Trader @TheTradingHubb tweeted a chart of the SLP and said that the token has started a fresh move higher.

The source: Twitter

The ongoing rise looks like a completed 5-wave bullish impulse where the 5th wave is extended. The high was produced very close to the 1.61 length of waves 1-3, which is common for fifth wave extensions.

As a result, a corrective phase seems likely. If the prolonged decline continues, the next supports will lie at $0.028 and $0.0248. These are the 0.382 and 0.5 Fib retracement support levels, respectively.

Hourly SLP/USDT chart | Source: TradingView

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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