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SPS seems to have finally bottomed out at 1.5 cents
I called it out several weeks ago before we had the major upward push. Back then I posted this chart, which showed how SPS could be bottoming out at the 1 cent + levels. Since price also broke out of the falling wedge we are getting quite some steam for the price action ahead.
The chart now looks like this:
So far so good. But we also know from the past price data that the real test will be the future lows for this impulse wave. If we can establish a sustainable channel , then we are off to the races; if not, then there could be more consolidation or worse, lower lows. But so far it is looking good. What we should be looking out for is a channel looking something like this:
The top of the channel is still not clear, whereas the bottom is based on a the daily candles that closed some weeks ago. This bottom part of the channel has more confidence, but as you can see has a very low slope. But exactly because of it, I think it could be sustainable. Should this channel get verified over the next weeks, we could see lows of around 2 cents again (still a ~30% increase from the ATLs) and highs climbing continually higher. At the end of the year it could be as high as around 5 cents. Again, this isn't too spectacular, but we have to keep in mind that the inflation/distribution for SPS is still very high with around 1M printed each day. This kind of inflation will not let the price skyrocket too fast, but Splinterlands itself will soon see many changes that could help with the economics.
There is a tipple resistance coming up as you can see here:
They all intersect at around 2.6 cents, and I would be surprised if price would simply ignore them. This could mean that price could still rise a bit, get rejected there, and then find support at around 2 cents again before continuing the upward trend.
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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