Counterparty – How Far Up?

On the 22nd of October, Counterparty formed a double bottom at $7 support level and immediately started to move up. It has already gained 130% moving from $7, to the current price at $15.7. But how far up it can go?

At the moment XCP/USD is facing the downtrend trendline as a resistance which has been rejected on the 11th of November. Although Fibonacci applied to the corrective wave up after the downtrend trendline(on a smaller scale) was broken, shows that Counterparty broke above the 127.2% resistance and it should at least test next resistance – 227.2% level at $18.2.

$18.2 could play a key role in the further direction. Break above it should push price much higher, to at least $28 to test 427.2% Fibonacci, while if $18.2 will be rejected a corrective wave down could follow, resulting in a continuation of the consolidation.

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