SFP has spent the past three years in a steady uptrend without experiencing significant volatility. The price climbed gradually until March 2024 before beginning a downward movement.
Interestingly, SFP has been resilient during the recent crypto market downturn. However, it still risks a breakdown from a 1,000-day pattern, which could bring back downside volatility.
Let’s look at the charts and see how likely this is.
SFP Price Risks Further Breakdown
The weekly time frame chart shows the SFP price has increased inside an ascending parallel channel since June 2022. These channels usually contain corrective movements, meaning an eventual breakdown is likely.
Currently, the SFP price trades at the channel’s support trend line. Movement in the lower portion of the pattern increases the possibility of a breakdown.
In addition to this, technical indicators are bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are falling. The RSI is below 50, while the MACD is negative.
Therefore, the most likely future outlook is a breakdown from the channel and a decline to $0.43.
Future SFP Trend
Looking at the price movement since launch, the ongoing channel increase is likely wave B in an A-B-C correction. If that is the case, SFP has started wave C, which will cause a breakdown from the channel and take the price to a new all-time low.
Using a Fib Time zone tool for the duration of waves A and B suggests this downward movement could end in March 2026. If wave C has 0.618 times the length of wave C, the price will bottom at $0.095.
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While a breakdown from the channel will confirm this possibility, the SFP price has two important support levels at $0.43 and $0.32 that are likely to trigger bounces once reached. So, the decline toward the target will likely take some time to materialize.
On the other hand, a bounce at the channel’s support trend line followed by an increase above the midline will invalidate this bearish prediction and could take the price to the resistance trend line. This currently seems unlikely.
Bearish 2025
The SFP price will confirm its bearish trend with a breakdown from its ascending parallel channel.
If that happens, the next support areas will be $0.43 and $0.32.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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