- Swipe Price has shattered the base of an ascending triangle pattern catalyzing a 57% upswing.
- The $5.96 target seems likely, especially considering the lack of resistance as seen in the GIOM model for SXP.
- A secondary confirmation will arrive after a decisive close above the MRI’s breakout line at $4.68.
The Swipe price is confirmed a break out after busting out of a bullish consolidation on Sunday.
Swipe Price eyes new all-time highs
The Swipe price is on the verge of a massive bull run as it recently broke out of an ascending triangle pattern. SXP buyers set up higher lows due to aggressive bid orders, but the resistance level at $3.8 prevented the altcoin from surging.
An ascending triangle pattern is formed when the swing lows and the flat supply barrier are connected using trend lines. The technical formation forecasts a 57% upswing, determined by measuring the distance between the pivot high on February 19 and the pivot low on February 23.
The target for Swipe price at $4.96 is obtained when this distance is added to the breakout point at $3.8.
Despite failing to break out multiple times, SXP surged 32% on Sunday, creating a convincing daily candlestick close above the said level. At the time of writing, the altcoin is trading at $4.33, with a 38% surge on the horizon.
If the bulls manage to push SXP above the Momentum Reversal Indicator’s breakout line at $4.68, it would affirm the existing bullish narrative and provide Swipe with a platform for a blast-off.
SXP/USDT 1-day chart
A tailwind to this bullish outlook is the growing daily active addresses count, which signals increased investors interested in SXP at the current price. This metric spiked 41%, showing that 447 new addresses joined the Swipe network on April 4.
Swipe Daily Active Addresses chart
Furthermore, the recent breakout has flipped the immediate supply barrier at $3.74 into a support barrier. Based on IntoTheBlock’s Global In/Out of the Money (GIOM) model, roughly 941 addresses previously purchased nearly 18.7 million SXP tokens here. Hence, these investors will act as a cushion to any short-term bearish pressure.
Additionally, the lack of resistance levels or underwater investors will allow the Swipe price to move to the upside swiftly.
Swipe GIOM chart
While everything seems to be looking up for SXP, a breakdown of the supply barrier at $3.8 could put the upswing in question. A breach below the $3.32 supply barrier will put 30.8 million SXP tokens held by 1,600 addresses “Out of the Money.” Such a move might push these investors to breakeven, adding to the selling pressure.
In that scenario, the Swipe price can be expected to drop 16% toward the 61.8% Fibonacci retracement level at $2.77. This move will invalidate the bullish outlook and open up the possibility for a downtrend.
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