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Swipe Price Prediction: SXP poised to surge by at least 30%

  • Swipe price is shaping the handle of a cup-with-handle base.
  • A retest of the all-time high at $5.15 would lock in a 30% gain from the handle.
  • SXP daily volume profile has been picture-perfect in March.

Swipe price has shaped a cup-with-handle base over the last 26 days and above the 50-day simple moving average. Critical to the bullish forecast is a daily close above the high of the handle at $3.87.

Swipe price reveals an opportunity to profit

The cup-with-handle base is a classic continuation pattern that follows a strong uptrend. Price tends to correct 30-40% before a rounded bottom begins to form. In general, the handle develops in the upper half of the base, with the declining volume on the left side, followed by a rising volume on the handle’s right side. 

Swipe correction was larger than average at 60%, but cryptocurrencies tend to trade to a different rhythm than other assets where the base is first utilized and tested.

SXP price is about 14% below the high of the handle and rising on improving volume. Naturally, the first line of resistance will be the March high at $4.05, but it will be an easy obstacle to overcome due to the base’s health.

It gets interesting for SXP price if it trades above $4.05 as the 1.382 Fibonacci extension level at $5 almost aligns with the August 2020 all-time high at $5.15. 

A more optimistic outlook sees Swipe price hitting the 1.618 Fibonacci extension level at $5.57.

SXP/USD daily chart

SXP/USD daily chart

A rejection of the handle high will be the first sign that the Swipe base may need more time or investors trapped near the February high are using the breakout to close their positions. Important support does not come into play until the price range of $2.85 - $2.70 framed by the .50 retracement level.

Author

Sheldon McIntyre, CMT

Sheldon McIntyre, CMT

Independent Analyst

Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.

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