SXP price showed signs of reversing to the upside when it broke out from a resistance line of nearly two years at the beginning of March 2023.
However, the price failed to sustain its rally and has been declining since reaching a new yearly high in April. The price is trading in a horizontal range and showing mixed signals on multiple timeframes.
SXP price is trading in a long-term horizontal range
SXP price has been falling below the descending resistance line since it reached a high of $5.97 in May 2021. The decline led to a decline of $0.19 in December 2022. The value was very close to a new all-time low.
At that time, SXP price appeared to collapse below the $0.24 horizontal area, which is the last support before the all-time low. However, the price immediately reversed the trend, indicating that the breakout was invalid. Thus, the previous drop was just an aberration (red circle).
The price broke the descending resistance line at the beginning of March 2023. At the time of the breakout, the line had been in place for 693 days. Breakouts from such long-term structures often lead to sharp upward movements. Such was the case for SXP, which hit a new yearly high of $0.93 in April.
But the upward movement cannot continue. SXP fell and validated the resistance line as support in June. Right now, it is trading in a range between $0.24 and $0.60.
The weekly RSI does not help in determining the future direction of the trend. When assessing market conditions, traders use the RSI as a momentum indicator to determine whether the market is overbought or oversold and to determine whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is up, the bulls still have the advantage, but if the reading is below 50, the opposite is true. The RSI is currently at the 50 line, which indicates an indefinite trend.
Is SXP price bullish or bearish?
The daily time frame analysis does not confirm the direction of the trend as it also provides mixed signals.
SXP price has followed an ascending support line since the beginning of the year. As a result, the trend can be considered bullish as long as SXP trades above it. Recently, SXP rebounded on June 10th (green symbol).
Despite the rebound, SXP failed to clear the minor resistance at $0.40. Instead, it has created a long upper wick (red icon), taken as a sign of selling pressure.
Similar to the weekly RSI, the daily indicator is very close to the 50 line, indicating an indefinite trend.
The reaction to the current ascending support line is likely to determine future SXP price predictions. A strong rebound could lead to a retest of the $0.60 resistance area, while a breakdown is likely to lead to a decline and touch the horizontal support at $0.25.
For the latest cryptocurrency market analysis from BeInCrypto, click here.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
