SPX/USDT: When uncertain TA meets optimistic FA.
I have had several requests to take a look at the SXP/USDT pair. Without having done more than a cursory review of the project, I would suggest this pair represents the epitome of when technical uncertainty meets fundamental exuberance regarding the future of the project.
The past few days have highlighted the need for risk management, i.e. the altcoin v. bitcoin correlation.
Despite the admittedly promising future of Swipe, the SXP/USDT pair proved to us that there is no project large enough or promising enough to escape bitcoin's event horizon.
This chart, in a matter of hours went, as Jamie Fox would put it - "from sugar to shit." Now that a proper reckoning has taken place, the SXP/USDT pair seems to have worked itself out of a demoralizing downtrend channel.
A few things to keep in mind watching this pair:
1. It still appears highly correlated (perhaps inversely) to bitcoin's price action - do not underestimate this.
2. There are some truly good reasons to be excited about the fundamentals of this project.
3. The depth of this correction, along with a lackluster performance off the local bottom, indicates buyers-turned-holders will likely be looking for "reasonable loss" selling points, rather than "reasonable profit-taking" selling points. This common psychological response to such a deep sell-off might mean that each little line of resistance could prove to be a mini battle ground on the way back up.
4. To make this even more complicated, and to qualify #3 above, I must also admit that I have rarely seen buyers willing to throw down enormous market buy orders the whole way up to the ATH, so the aforementioned lines of resistance could very well melt like butter once an announcement has been made, and whales sniff out the fomo.
Although I tend to be long on this project medium-long term, my hesitations regarding the TA and recent chart damage require that I urge caution in the short-term, and post this analysis in neutrality.
I'm excited to see what comes of Swipe. If you're an informed investor, I wouldn't be concerned here at all. If you're a trader, stop losses have never been more important.
Good luck.
The past few days have highlighted the need for risk management, i.e. the altcoin v. bitcoin correlation.
Despite the admittedly promising future of Swipe, the SXP/USDT pair proved to us that there is no project large enough or promising enough to escape bitcoin's event horizon.
This chart, in a matter of hours went, as Jamie Fox would put it - "from sugar to shit." Now that a proper reckoning has taken place, the SXP/USDT pair seems to have worked itself out of a demoralizing downtrend channel.
A few things to keep in mind watching this pair:
1. It still appears highly correlated (perhaps inversely) to bitcoin's price action - do not underestimate this.
2. There are some truly good reasons to be excited about the fundamentals of this project.
3. The depth of this correction, along with a lackluster performance off the local bottom, indicates buyers-turned-holders will likely be looking for "reasonable loss" selling points, rather than "reasonable profit-taking" selling points. This common psychological response to such a deep sell-off might mean that each little line of resistance could prove to be a mini battle ground on the way back up.
4. To make this even more complicated, and to qualify #3 above, I must also admit that I have rarely seen buyers willing to throw down enormous market buy orders the whole way up to the ATH, so the aforementioned lines of resistance could very well melt like butter once an announcement has been made, and whales sniff out the fomo.
Although I tend to be long on this project medium-long term, my hesitations regarding the TA and recent chart damage require that I urge caution in the short-term, and post this analysis in neutrality.
I'm excited to see what comes of Swipe. If you're an informed investor, I wouldn't be concerned here at all. If you're a trader, stop losses have never been more important.
Good luck.
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