Smooth Love Potion (SLP) Provided a 150% Weekly Gain – Is It a Trend Reversal?

Smooth Love Potion (SLP) Provided a 150% Weekly Gain – Is It a Trend Reversal?

 Published: February 10th, 2022

Smooth Love Potion (SLP) tokens are directly connected to the Metaverse, where Axie Infinity players earn this coin to reward their achievement. It is an ERC-20 token based on the Ethereum network to breed new digital pets known as Axies. The first breeding cost will take 100 SLP, and it will gradually increase - 300 for the third and 500 for the fourth. Users can breed Axies a maximum of 7 times, whereas the seventh breeding cost will be 2100 SLP.

The number of SLP circulation is relatively liquid, where tokens are burned to breed new Axies. At the time of writing, there are 4.10B SLP are in circulation. The increase in Axie Infinity players would result in much higher SLP’s to the ecosystem as players win and lose.

The SLP/USDT price showed a significant increase in the volume where the last 24 hours volume was $3,535,803,134, representing a 181% increase. Moreover, the current market cap of the instrument is $139,003,265, where the price provided a 289% gain from the recent swing low.

Let’s see the upcoming price direction from the SLP/USDT technical analysis:

SLP/USDT Daily Chart

SLP/USDT Daily Technical Analysis 9th February 2022

In the SLP/USDT daily chart, the price showed a significant decline from November 2021 high to February 2022 low. However, the recent recovery is very strong where the price moved above the dynamic 20 EMA with a strong bullish daily candle and showed further upside pressure with volume support. Therefore, the impulsive bullish pressure after the recent extensive corrective momentum indicates that bulls are interested in taking the price up towards previous swing highs.

The above image shows how the price closes above the dynamic 20 EMA while the MACD Histogram moves above the zero with consecutive higher highs. Meanwhile, the MACD lines are below the Histogram and aimed higher.

Therefore, based on the current daily context, SLP/USD is more likely to move up towards the 0.542 resistance level in the coming days. The buying pressure is valid as long as the price trades above the dynamic 20 EMA, where any bearish correction towards the dynamic level would encourage bulls to add more positions. Conversely, a break below the 0.0087 swing low would be an alarming sign for bulls where a HODLing approach is needed to see further gains.

SLP/USDT H4 Chart

SLP/USDT H4 Technical Analysis 9th February 2022

According to the Ichimoku Cloud, SLP/USDT is trading within a solid bullish trend where the price made multiple swing highs above the Kumo Cloud. The buying pressure shifted the Future Cloud’s direction where the Senkou Span A moved above the Senkou Span B and aimed upside. Moreover, the lagging span is above the price and aiming higher, indicating a strong buyer interest in the price.

The above image shows how the price trades above the Kumo Cloud where dynamic Tenkan Sen and Kijun Sen are below the price and working as minor supports. Meanwhile, the RSI is stable above the overbought 70 level, indicating a strong buyers’ interest.

Based on the current price structure, any bearish correction towards dynamic Tenkan Sen and Kijun Sen would be a buying opportunity where the ultimate target of the bull run would be towards the 0.0900 area. On the other hand, a break below the Kumo Cloud with a bearish H4 candle would eliminate the current sentiment and initiate a broader correction to the price.

SLP/USDT H1 Chart

SLP/USDT H1 Technical Analysis 9th February 2022

In the SLP/USDT intraday chart, the price is trading within a bullish pressure where the most recent high volume buying pressure came from 0.0293 level. Moreover, the stable bullish price action above the 0.0312 level is a sign that traders are still interested in taking the price up.

The above image shows how the price closes above dynamic 20 EMA and weekly VWAP with a substantial volume. Meanwhile, the MACD Histogram is above the zero line, while there is no sign of divergence in MACD lines.

Therefore, based on the current price structure, any bearish correction to dynamic 20 EMA or weekly VWAP would be a buying point where the primary price target would be towards the 0.5000 level. On the other hand, a break below the 0.0177 level with a bearish H1 close might alter the current market structure and lower the price towards the 0.0087 area.

Should You Try Buying SLP/USDT?

As of the above discussion, the SLP/USD is more likely to show further bullish pressure in the coming days, where the primary bullish target would be the 0.0542 swing high. In that case, any bearish correction and bullish rejection from the intraday chart would be a suitable buying opportunity.

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