Smooth Love Potion (SLP) has dropped considerably from its highs on February 10th. However, it has bounced off an important Fibonacci support level and is showing the first signs of a potential bullish reversal.
The SLP has been rallying since Feb 3, when it hit a low of $0.087. The upward move led to a high of $0.0409 on Feb 10. This represented a 370% increase in just over seven days.
However, the price has been dropping ever since and has dropped by 60% in the last 13 days. This led to a low of $0.0165 on Feb 24.
Indicator readings for SLP
Daily timeframe indicators for SLP provide a very neutral reading.
While the MACD and RSI are falling, the former is at 0 while the latter is at 50. So while the decline is a sign of weakening momentum, neither indicator has crossed the bearish boundary.
However, the six-hour chart provides a more bullish outlook as both the RSI and MACD have generated a very significant bullish divergence. This is a sign that a jump might happen soon.
In this case, the closest resistance area would be at $0.025.
Wave count analysis
Cryptocurrency Trader @TheTradingHubb tweeted an SLP chart. stating that the token may have completed its correction.
The SLP wave count suggests that the price has completed a five-wave upward move and a resulting ABC corrective structure. The sub-wave count is given in red.
The bottom of wave C occurred at a confluence of Fib retracement levels:
0.786 Fiber retraction support level (black) Design wave length A to C (white) Sub wave length one designed for sub wave four (red)
These factors suggest that the entire region from $0.015 to $0.0175 is suitable for a fund.
As for the long-term count, it remains to be seen whether the entire rise is part of a larger ABC structure (white) or the start of a new bullish momentum (black).
Either way, a move towards $0.05, which would give the A:C waves a 1:1 ratio, seems likely.
For the latest BeInCrypto news Bitcoin (BTC) Analysis, click here
All information contained on our website is published in good faith and for general information purposes only. Any action you take on the information found on our site is strictly at your own risk.