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2 months of green
...is a nice welcome after losing more than 99% of its value. But there are some big caveats from a TA point of view.
- Price could be stuck in another "M" movement: We can see that SPS has moved in M patterns and this might just be the first green wave after falling back into the downwards trend. There is a bigger resistance at 1 cents as well which could seal the top of the movement.
- There is massive resistance at sub 2 cents as well, both horizontally as well as from a descending trend line.
- Volume has been decreasing with a rising price. I am not sure exactly why volume has plummeted, but it’s rarely a good sign when price increases with it.
Can SPS reach 10 cents?
As others have pointed out 10 cents is the price where we would see SPS an ATH for its MC. That
would be pretty big. It’s "only" roughly a 10x from here, so it’s not out of the question. As you can
see we are currently on a trajectory towards $1 even – not that that’s going to hold, but it’s still nice
to see. With over a year of the bull market left, it would be quite the let down if we didn’t see such a
price movement. The good news is that we seem to have already tackled the resistance we have covered in the last post.
Fundamentals?
I haven’t quite kep up to date with SPL since I have sold all of my assets except for SPS. The reason
for selling had little to do with the asset performance actually, but more with the lack of time I had
for playing the game. It’s also not that much fun to justify the hours it can take to earn a decent APR.
It’s good that SPL got the DHF funding at least; of course it also means that they have to deliver in
some way. Marketing would be good to have as well and I think it’s a relatively urgent point the team
wants to get done. A big problem for the game’s economy are the falling prices for cards. It seems
hard to justify buying cards now if we know that they will be heavily devalued in a year’s time. But I
guess if one does play regularly with them one could get the lost value back...
What’s up with SOULKEEP btw? I haven’t played it for the reason I am not playing the card game
anymore, but it seems strange that it’s a non event after relatively much hype apparently. Is it so
bad?
Conclusion
I still feel the fate of SPL is unclear at best. The company seems to have only a couple of months of runway all the time – yet they have continued to build and perhaps that is the greatest strength SPL has. It’s also good to know that we are finally over the 50% distribution for SPS and potentially more
burning to come if DEC ever goes back to peg again.
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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