- SXP experiences a hyperactive market with investors rapidly buying and selling.
- Bearish momentum is strengthening with negative MACD and stochastic RSI values.
- Traders should wait for trend confirmation before taking substantial positions.
Solar (SXP) bulls have been prominent in the previous 24 hours, with prices ranging between an intra-day high of $0.8541 and a low of $0.7858. SXP is trading at $0.8107, up 2.92% at press time.
During the rally, market capitalization increased by 0.05% to $451,404,243, and 24-hour trading volume decreased by 55.67% to $507,758,454. The trading volume surpassed the market capitalization, indicating that the market was hyperactive, with investors rapidly buying and selling SXP.
#Binance Will Support the Swipe $SXP Mainnet Swap & Rebranding Plan to Solar #SXP.https://t.co/zAiUtEfFi1— Binance (@binance) March 31, 2023
The recent spike in SXP is due to South Korean traders jumping on the SXP bull train and Binance’s declaration on March 31st that it will enable SXP token movement. This move is intended to boost SXP’s liquidity and attract additional investors to the platform, potentially increasing market capitalization even more.
SXP/USD 24-hour price chart (source: CoinMarketCap)
The MACD line on the 2-hour price chart has formed a bearish crossing after falling below its signal line and heading southward with a score of 0.01788746. This movement indicates that the short-term trend is turning negative and that there may be a possible selling opportunity for traders wanting to capitalize on the downward momentum.
The emergence of negative MACD histogram bars indicates that selling pressure is developing, which might soon lead to additional bearish action.
Although the Aroon up is 21.43%, the Aroon down is 7.14%, indicating that the bullish trend may still have some power left, the bearish trend is gathering speed and might possibly take over soon.
The difference of 14.29% between the Aroon up and Aroon down also shows that the market is still bullish; thus, traders may want to wait for confirmation of a trend reversal before taking any substantial positions in the market.
SXP/USD chart (source: TradingView)
The Relative Strength Index (RSI) has fallen below its signal line, indicating growing bearishness in SXP, with a value of 53.47. This score indicates that the SXP is now in a neutral zone, with no overbought or oversold situations.
The stochastic RSI value of 16.33 and movement below its signal line imply that the negative momentum in SXP is strengthening, and traders should consider short positions. This move confirms the RSI’s sell signal, indicating a possible downward trend soon. It adds to the potential purchasing opportunity for investors hoping to join the market at a discount.
The bears seem to have the upper hand in the SXP market since the Chaikin Money Flow (CMF) is in negative territory and reading -0.06. This movement indicates that money is leaving the SXP market, which might lead to additional price decreases in the immediate term. But, since it is going northwards towards the “0” line, the bear’s hold on the market may weaken, and the price may rebound soon.
SXP/USD chart (source: TradingView)
In conclusion, SXP’s short-term trend is turning negative, but the bullish trend may still have some power. Traders should wait for a trend reversal before taking substantial positions in the market.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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