Swipe (SXP) has been seeing wild swings in price this month but a period of consolidation appears likely before the next big move.
Swipe (SXP), the 68th digital asset by market capitalization, has been one of the most volatile cryptocurrencies of the previous weeks.
Fueled by a new cryptocurrency card and partnership with Binance, SXP price soared from $1.50 to $5 in a matter of days in mid-August. However, the price of Swipe dropped more than 50% to $2.30 over the past week.
Crypto market daily performance snapshot. Source: Coin360
Swipe retraced with 54% to bottom out at $2.30
SXP/USDT 12-hour chart. Source: TradingView
The 12-hour chart of Swipe is showing a full retrace of the previous rally. As the chart is also showing clear support and resistance levels, the first primary support level was found between $2.20-2.40.
Swipe retraced to this level to find support, bouncing by 35% since. However, a clear breakout and new rally towards the all-time high seems unlikely in the short term. Instead, a substantial consolidation period before could occur.
The left side of the chart is showing a similar consolidation period before continuation as assets prices don’t go up in one go. Frequently, levels are tested for support and resistance before the price of a specific asset starts to rally, and Swipe is no different.
The chart doesn’t have much historical price data, Fibonacci helps
SXP/USDT 12-hour chart. Source: TradingView
The Fibonacci extension tool can be used for further price projections in price discovery as the chart doesn’t show much historical price data.
For Swipe to rise further, it must break out above the current resistance level, which is found between $3.10-3.20. However, once Swipe breaks out of this range, a new impulse wave is likely given the current market momentum and sentiment surrounding the project.
The Fibonacci extension tool can be used with the recent low and high to set new price targets. The first massive level is at $6.60-6.70, and the second level (at 2.618 Fibonacci level) is found at $9.40.
The potential scenario for Swipe
SXP/BTC 12-hour chart. Source: TradingView
As Swipe faces a significant resistance zone, it is likely that the asset sees some more consolidation before continuation.
The central support zone is found in the green area, which relies on the previous high. As long as the green zone between 0.00020000-0.00022000 sats sustains support, further upward momentum can be expected.
The crucial resistance zone to break through is the red area, a significant resistance block between 0.00026000-0.00028000 sats. Once the price of Swipe breaks through this level, the next resistance zone can be found at 0.00032000-0.00034000 sats.
If Swipe does well, Binance Coin will likely follow
BNB/BTC 1-day chart. Source: TradingView
Binance Coin (BNB) is one of the major cryptocurrencies that has been lagging in recent weeks unlike Ether (ETH), Chainlink (LINK) and others.
However, the price of Binance Coin is stuck between the 100-day and 200-day Moving Averages (MAs), as the chart shows.
A breakout above the 200-day MA would create space towards the range high at 0.0023000 sats. One bullish sign is the support/resistance flip of the green zone, which became support again.
In other words, more upside can be expected for BNB as long as the 0.0018000 sats holds as support.
The general rule of thumb is when Binance Coin does well, the IEOs, or Initial Exchange Offering tokens that were launched on Binance, also perform well. In that regard, focusing on these coins, including Swipe, may be worth keeping an eye on for traders in the near term.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
via cointelgraph.com
