Smooth Love Potion (SLP) has dropped considerably from its highs on February 10th. However, it has bounced off an important Fibonacci support level and is showing the first signs of a potential bullish reversal.

The SLP has been rallying since Feb 3, when it hit a low of $0.087. The upward move led to a high of $0.0409 on Feb 10. This represented a 370% increase in just over seven days.

However, the price has been dropping ever since and has dropped by 60% in the last 13 days. This led to a low of $0.0165 on Feb 24.

Indicator readings for SLP

Daily timeframe indicators for SLP provide a very neutral reading.

While the MACD and RSI are falling, the former is at 0 while the latter is at 50. So while the decline is a sign of weakening momentum, neither indicator has crossed the bearish boundary.

However, the six-hour chart provides a more bullish outlook as both the RSI and MACD have generated a very significant bullish divergence. This is a sign that a jump might happen soon.

In this case, the closest resistance area would be at $0.025.

Wave count analysis

Cryptocurrency Trader @TheTradingHubb tweeted an SLP chart. stating that the token may have completed its correction.

The SLP wave count suggests that the price has completed a five-wave upward move and a resulting ABC corrective structure. The sub-wave count is given in red.

The bottom of wave C occurred at a confluence of Fib retracement levels:

0.786 Fiber retraction support level (black) Design wave length A to C (white) Sub wave length one designed for sub wave four (red)

These factors suggest that the entire region from $0.015 to $0.0175 is suitable for a fund.

As for the long-term count, it remains to be seen whether the entire rise is part of a larger ABC structure (white) or the start of a new bullish momentum (black).

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Either way, a move towards $0.05, which would give the A:C waves a 1:1 ratio, seems likely.

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