Swipe (SXP), the digital asset ranked 68th by market capitalization, has been one of the most volatile crypt currencies of the previous weeks.
Powered by a new cryptomoney card and a partnership with Bitcoin Freedom, the price of SXP shot up from $1.50 to $5 in a matter of days in mid-August. However, the price of Swipe fell more than 50% to $2.30 last week.
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Swipe dropped 54% to touch ground in USD 2.30
SXP/USDT 12-hour chart
The 12-hour Swipe chart shows a complete reversal of the previous upward movement. As the chart also shows clear support and resistance levels, the first primary support level was found between USD 2.20 – USD 2.40.
Swipe went back to this level to find support, bouncing 35% since then. However, a clear breakout and a new rally towards the historical peak seems unlikely in the short term. Instead, a period of substantial consolidation could occur sooner.
The left side of the graph shows a similar consolidation period before the continuation, as asset prices do not rise all at once. Often, levels are tested for support and resistance before the price of a specific asset begins to rebound, and Swipe is no different.
The chart does not have much historical price data, Fibonacci helps
The Fibonacci extension tool can be used for additional price projections in price discovery, as the chart does not show much historical price data.
For Swipe to increase further, it must break through the current resistance level, which is between USD 3.10 and USD 3.20. However, once Swipe moves out of this range, a new wave of momentum is likely to occur given the current market momentum and the sentiment surrounding the project.
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The Fibonacci Extension tool can be used with the recent minimum and maximum to set new price targets. The first massive level is at USD 6.60 – USD 6.70, and the second level (at the Fibonacci level of 2618) is at USD 9.40.