As expected the volatility in the Splinterlands markets has been insane the last few weeks due to the launch of the Chaos Legion presale. The price of Dark Energy Crystals has been steadily dropping for the last 12 days as the rewards changes kicked in and the rest of the crypto markets also experienced large losses. We were due for a price correction and now we should experience some consolidation or accumulation ranges following that.

Part of the Splintershards price drop was due to the release of new tokens to the public. Some of the private sale investors also received their vested token payouts this week, which they immediately dumped at these levels. It will take some time for the price to recover but there are still plenty of buyers interested in accumulating VOUCHER tokens from staking SPS. I believe they are just waiting for the right time to add onto their staking positions and increase their slice of the presale pie.

On my last two posts I charted the Fibonacci retracement levels for both SPS and DEC tokens. This time I'm going to show the inverse Fibonacci retracement levels, which represent a potential bounce back from our recent lows (assuming that was the temporary bottom).

If the price were to continue breaking down support at the 45-50c levels we could see a mass capitulation down to 20-35c before buyers are interested again. I drew two purple lines where this accumlation range would present itself.

Should we get the buyers to resurface here then I drew 4 potential scenarios on a bullish price reversal:

Red- 61 cent resistance over the course of the next few weeks, followed by a retest of the 50c zones
Yellow- 72 cents temporary relief bounce. The fear may have subsided already and new tokens are being absorbed
Green- Huge wave of new buyers could end us back to 80 cents before finding some more sellers who bought low here
Blue- 88 cents would be a full golden retracement to previous trading ranges where buyers were in a frenzy. Very unlikely unless we face a major catalyst in the game development or partnerships

The reason why I believe we may find some buyers stepping in around these price levels is because this was a major area of interest prior to the breakout at the beginning of the month. We have already seen a golden retracement from the run up to the highs back down to 55c. This price promptly broke down which showed the sellers did not face much resistance, however with these steep discounts some people could not help but add onto their SPS bags this morning.

If there for some reason is a huge amount of presale tokens unlocked that get dumped onto the market then you can fully expect us to retest the lows in those purple bar ranges (20c-35c) as the panic selling ensues after. As long as I am making decent airdrop returns I am going to continue to hold my DEC tokens and sell off my SPS every few days- there is no reason for me to kill the goose that lays the golden eggs yet when it is still laying those Splintershard gems daily.

I am not a financial advisor and this is not financial advice. This information is for educational and entertainment purposes only.

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