Sponge (SPONGE/USD) Continues to Maintain Chances for a Bullish Price Breakout

The bear market that issued from above the $0.0016 price level on May 10 was an aggressive one. But on May 11, the bear market faced a brick wall around the $0.000462 price level, and ever since then, SPONGE/USD has continued to range sideways at the level. It is not likely that the bear market will go beyond this level, as this same price level was the point of decision in the last bull market.

Key Levels

• Resistance: $0.0007855, $0.0010, and $0.00117
• Support: $0.00040, $0.00035, and $0.00032

Sponge (SPONGE/USD) Price Analysis: The Indicators’ Point of View

The current four-hour session is represented by a plus sign doji candlestick pattern, which is a sign of indecision. The strong bull market has propelled the price to the level of the 20-day moving average. This means that the market is now at equilibrium. This bullish recovery is reflected by the indicators: the Bollinger Bands converge, and the Moving Average Convergence and Divergence (MACD) already has a bullish crossover with progressive histograms. A strong bullish movement might break out soon.

SPONGE/USD Short-Term Outlook: 1-Hour Chart

From this standpoint, we can see that traders are bearish around the $0.0005 price level. However, the formation of a higher bullish support level, which is in proximity to the key resistance levels, suggests that buyers are also formidable. However, as the market approaches the $0.0005 level, the bull market loses vigor, suggesting a possible price retracement. Although the tug-of-war intensifies around the $0.0005 price level, the market still has a high probability for upside actions since the key support levels still feel strong.

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