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Spillways is on its way up again
After its peak at around cents in early spring price was mostly on a downwards trend. In my last update I noted that price at around 0.005 was getting increased support, which generally means that price could be reversing some time after that. I stated:
It is now sitting on a strong horizontal support which is formed by the previous peaks. I am quite confident that this could be the bottom. Since there is room to the upper resistance we could see, however, one more push down.
And this was the chart from back then:
While price ultimately did fall a bit lower to around 0.003, price did find support in this area. We have now this chart after the recent breakout:
We clearly see the channel in which price has been moving for the last few months. We also see the weekly support in purple which showed the price bottom. And finally, we see the impulse price channel in which price is now moving. It is very steep, so it won't last all too long. Yet we can expect price action within it for at least a couple of weeks, perhaps 1-2 months.
For the short term I see a rejection at the top of this dispersing channel and a possible revisit of the 0.006 area. This would also be a retest of the former resistance of the falling channel, so it looks like a pretty good target. It could look something like this:
Alternatively, I see price falling back to the macro support, also in that area but finding support a bit later before again going up. Overall the chart looks pretty good, but I would wait for revisiting lower levels for an entry.
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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