Crypto Analysis | SPS Continues its Downward Trend!
Good day Hiveians!
Join me in analyzing the crypto markets!
SPS has made a newer low in the crypto crash of last week
This means that the critical support between 5 and 6 cents mentioned earlier has failed. In the last post I addressed the fundamental reasons for why we are seeing a falling SPS price and why this situation is probably going to stay with us for quite some time. This is definitely testing everyone's involvement with Splinterlands as we will have to have confidence in the team to fix the economy. Some good progress is being made by pricing all Splinterlands assets in DEC which is already helping to bring it to its peg. A strong DEC will also put buying pressure on SPS by introducing the burn mechanic.
When the airdrop of SPS stopped in July we observed a trend change which now in hindsight was only brief. We are in fact still in the downward blue channel! This breakout was therefore only a fakeout:
Therefore the updated chart looks like this:
There have now been multiple times when the blue downward channel was broken only to be reestablished weeks or months later. This is quite unfortunate, but inevitable due to the high inflation. We can see that with the introduction of the GLX airdrop price has failed to rally. This is mainly due to the bigger crypto events which unfolded. Interestingly, GLX is traded at a fairly high price of about 20 cents+ currently. This could indeed put buying pressure on SPS to stake more of it.
Just today we had a new all time low of 3.7 cents. The TA of SPS currently looks dire indeed as the channel suggests that the price could easily fall to sub 2 cents (!). There is no support at all curently.
The only hope for SPS (in the short and midterm) is that the GLX airdrop catapults SPS higher. The other two developments is the new Tower Defense game as well as the LAND development. These have to be a success, or else SPS will fall to 1-2 cents.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
Check out the Love The Clouds Community if you share the love for clouds!
I also think the GLX airdrop should be able to help hold the sps price if the market remains stable for now. Hopefully it does
GLX might help SPS, but only if GLX stays strong. If it starts dropping, then SPS will surely go down even more.
I actually think we could see a similar pattern for GLX: a strong pump lasting several months to be followed by a downward trend. However, a key difference is that GLX has a much reduced supply: only 100 million.