Good day Hiveians!
Join me in analyzing the crypto markets!
There is no way to sugar coat it: SPS is one of the worst performing tokens in crypto currently
3 weeks ago I already pointed out that there was no support for SPS. This is because SPS dived back into the descending channel after it briefly established an ascending channel after the SPS airdrop stopped. With SPS continuing inflating by almost half a million new tokens every day the selling pressure is simply to great to keep prices stable. There is now only one real solution for all of the Splinterlands economy: LAND.
Land has the potential to reverse the high inflation in all of SPL assets. This is because players will have to spend DEC for upgrading and maintaining their land plots. This will in turn bring DEC to its peg again and introduce the SPS>DEC burn mechanic. Since this is the only big way to acquire DEC people will have to burn SPS in the future. This will in turn finally reduce or even stop the inflation for SPS. This will create upward buying pressure. Then there is also the License sale which will become more attractive with a rising SPS price and in turn burn much SPS starting a fly wheel effect. Land will also soak up a lot of cards since players will stack their cards on their plots which will relief the high inflation of cards currently. Also, the TD game will be a sink for cards. All of this is fantastic for the SPL economy, but it is clear that the team will have released LAND way too late. This should have been a #1 priority!
TA
The descending channel which SPS has repeatedly failed to break out of:
In the last post I shared this outlook. You can see that there is no support for SPS at the current range:
Since then SPS has almost every day made a new All Time Low (!) and has now finally broke down lower. I am now convinced we will see the 2 cents area.
If Bitcoin cannot sustain current levels, SPS will drop to 2 cents and will then recover to probably the 3 cents area. This is heart braking for anyone involved with SPS, but it seems we will have to go through this before seeing a reverse in price action with the introduction of LAND. Interestingly, the GLX airdrop has so far not helped SPS in any way. This is surprising, since DEC rallied when it provided airdrop points for SPS last year.
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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