Not much has changed since I posted about SLP a few days ago. I have linked my previous post below as everything within it is still relevant in my opinion.
Take this into consideration:
1) SLP has now flipped the green box I had from support to resistance, so I have changed it to red in color indicating a zone of resistance.
2) The longer we hang out below this box the higher the likelihood becomes that situation 2 will play out, however situation 1 could still be on the table.
3) AS LONG AS SLP ISSUANCE STAYS 10-15X GREATER THAN THE BURN RATE, IT IS HIGHLY UNLIKELY WE WILL CONTINUE TO MOVE UPWARDS!!! This is a key component to the price everyone seems to be forgetting. SLP still has a big inflation problem right now. The only way we can officially move into an uptrend is if the mint rate decreases drastically, OR if the market cap increases at a rate that is greater than the average current mint/burn rate. You cannot keep increasing supply of a coin by 10-15x its burn rate and expect an uptrend unless there are a ton of buyers. Basic supply and demand.
4) I know Axie is aware of the mint/vs burn rate problems but as of today they still exist. Until this changes i'm relatively bearish on this coin.
5) Remember, this is not financial advice and always do your own analysis/research before making any decisions on the market.
Take this into consideration:
1) SLP has now flipped the green box I had from support to resistance, so I have changed it to red in color indicating a zone of resistance.
2) The longer we hang out below this box the higher the likelihood becomes that situation 2 will play out, however situation 1 could still be on the table.
3) AS LONG AS SLP ISSUANCE STAYS 10-15X GREATER THAN THE BURN RATE, IT IS HIGHLY UNLIKELY WE WILL CONTINUE TO MOVE UPWARDS!!! This is a key component to the price everyone seems to be forgetting. SLP still has a big inflation problem right now. The only way we can officially move into an uptrend is if the mint rate decreases drastically, OR if the market cap increases at a rate that is greater than the average current mint/burn rate. You cannot keep increasing supply of a coin by 10-15x its burn rate and expect an uptrend unless there are a ton of buyers. Basic supply and demand.
4) I know Axie is aware of the mint/vs burn rate problems but as of today they still exist. Until this changes i'm relatively bearish on this coin.
5) Remember, this is not financial advice and always do your own analysis/research before making any decisions on the market.