Crypto Analysis | SPS Is A Dumpster Fire

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Ok, I loled when I wrote this title

But it's essentially true, right? I don't know of many tokens that continue to make All Time Lows, especially when the entire crypto market is still up overall. SPS has as of today made a new ATL and could actually be heading to sub 2 cents! It's too early to tell definitively, but for now we are once again in the dreaded falling wedge.

Last time I posted this chart, which we have to now update to...

Price briefly broke out of the blue falling wedge (which it has done now at least several times). But just like every time before price then fell lower to make a new ATL. The green ascending channel is therefore invalidated.

The falling wedge can be drawn in several ways. The purple area is the price movement from the previous falling wedge (notice that the last ATL was above the bottom support of that wedge which gives us the blue area). Then we have the new falling wedge with a higher resistance trend line which is the red area:

I have previously often said that the 2 cents area seems like a good support as the ecoystem of Splinterlands is just too big for price to crash down below it. We can see that the fall of price has indeed slowed down which is evident in the higher support (purple area). We will have to see if price once again heads towards the previous resistance (upper purple line) which should then become a support. But this would be well below 2 cents. I think we are going to see a pattern that I have often observed when a true bottom appears.

In this case, the decline of price slows down and makes higher lows than the previous support of the trend line would suggest (blue area). Although we might head briefly sub 2 cents, I think this is what we will be seeing:

SPS will eventually establish a sustainable ascending channel. This might still take some time, but I think the base of that channel should be established sometime this year. We could see price declining less and less to make a bottom from which price can then make higher highs again. 2 cents seems to be an ideal place for this to happen since it doesn't make any sense for SPS to go to 1 cent and below. Just think how little money would be needed to buy 1M or so SPS (it is already quite little, but at 1 cent it becomes comical).

This time frame also coincides with LAND which should at least be a good start for turning the economy around...

 

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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!

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