• Swipe price reveals bearish topping pattern on the intra-day chart.
  • Intra-day Relative Strength Index (RSI) forecasts trouble.
  • Swipe price history forces traders to be prepared for wide-ranging fluctuations. 

Swipe price action in May has been counter-productive for a bullish outlook, as three failed attempts above the August 2020 high have forged a head-and-shoulders top pattern that projects a noteworthy decline in the coming days.

Swipe price fails to secure trader commitment

A head-and-shoulders top pattern is one of the highest-ranked formations in performance and success rate, but it is more complex, combining trend lines, support or resistance lines and rounding. 

The pattern has three well-defined peaks, either sharp or rounded, with the second peak always higher than the other two, commonly referred to as the head. The first peak is the left shoulder, and the third peak is the right shoulder. Both the left and right shoulders are lower than the head, but they do not need to be the same height. In fact, a higher peak for the left shoulder has been found to add to the post-breakout performance for the topping pattern.

During May, Swipe price has formed a bearish head-and-shoulders top pattern with the shoulders being roughly equidistant from each other and symmetrical. The measured move target of the pattern is $3.50, or a decline of 22% from the current position of the neckline and a drop of 28% from the price at the time of writing.

In between the neckline and the target is the 50% retracement level of the rally since April 22 at $4.27 and then the 61.8% Fibonacci retracement at $3.89. Both should offer some support for Swipe price. A failure to hold the target at $3.50 increases the likelihood of at least a test of the 78.6% retracement at $3.35 and even the April 22 low at $2.67.

SXP/USD 4-hour chart

SXP/USD 4-hour chart

The higher probability outcome for Swipe price is a resolution of the pattern to the downside, but if SXP rallies above the right shoulder high at $5.30, the head-and-shoulders top pattern is voided, and speculators need to be ready for a test of the all-time high at $5.87.

An extended rebound will carry Swipe price to the 138.2% extension of the 2020 bear market at $6.89.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

SafeMoon retraces in preparation for 16% jump

SafeMoon price broke out of its range-bound movement as it bounced off a critical demand barrier. Moreover, SAFEMOON has also risen above the midway point of its consolidation, indicating a willingness to ascend. 

More SafeMoon News

This crucial level will determine whether Ethereum Classic price can resume its uptrend

Ethereum Classic price seems to be range-bound. While its correlation with Bitcoin dries up, ETC awaits a spike in volume. Only a daily candlestick close above the 50-day MA will help this crypto rise.

More Ethereum Classic News

Ripple to set the stage for 18% gains

XRP price formed the second peak on June 14, indicating the formation of a double top. As a result, Ripple is starting to decline, heading toward an immediate support level.

More Ripple News

Shiba Inu ready to reverse to $0.0000050

SHIB price faces stiff resistance ahead. A spike in selling pressure could send Shiba Inu drop to $0.0000050. Only a 4-hour candlestick close above $0.0000080 could save the memecoin. 

More Shiba News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast