Binance is the worlds largest cryptocurrency exchange. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
What does swipe do?
-SXP token holders have the ability to create proposals and vote for protocol changes on
the Swipe Network. SXP can be bonded within the network to secure the protocol and
receive staking rewards.
Why can SWIPE increase in value?
1. Demand is increasing:
If you DYOR (DO YOUR OWN RESEARCH) you can see here the GITHUB for SXP (Swipe); the GitHub is basically where you can find the coding updates to the swipe protocol.
As you can see, they are currently working on Swipe Swap, which is going to be a Cryptocurrency exchange powered off SXP Swipe token. Once this Exchange is live and more and more users flock to use it, considering that Swipe is owned by Binance the worlds largest cryptocurrency exchange this can lead to more usage of the token, and when the usage and demand of a token increases substantially it can often lead to higher prices.
2. The chart is showing us the sellers are becoming weaker:
Head & Shoulders Pattern:
In the Pattern price forms 3 distinct peaks after a strong uptrend, the left and right peak should have a similar height (shoulders), the middle peak (head) has to be the highest or this can not be a . They should seem triangular in appearance but as long as it fits the main characteristics can still be a valid pattern.
You can click the above image for a further explanation of this pattern.
General Pattern Failure:
General Pattern Failure occurs when a chart pattern breaks out, fails to hit target, quickly reverses then rejects off that same breakout level back inside the pattern continuing in the opposite direction of the breakout. General pattern failure can also be considered a Liquidity Grab or can be referred to as a “Fake Out” also when it happens more rapidly after the original pattern breakout.
3. Similarity to BNB Token (Binance Coin):
So the SXP token is coming back inside this Pattern , we have the potential for the initial downwards breakout to get rejected and fail as more and more buyers flock to SXP . But this is not the first time we have seen something like this happen.
Learning to trade patterns such as these can provide great opportunities if you understand price action and how to identify the key areas inside the patterns that other traders and investors may be focusing on too, these areas become important psychological levels on the chart & price tends to have strong reactions from these areas.