The price action of XLM since November has been quite disappointing to many investors. However, the good news is...XLMBTC is in a falling wedge pattern - which is generally bullish. Additionally, the last touch of the wedge's bottom occurred with some really enormous volume. This is enough to convince me that there is a strong possibility of a reversal on this pairing. On top of that, XLM has cleared the important 13 cents area and has tested it as support over the last several days. It could finally be on the verge of breaking out of its downtrend against the U.S. Dollar as well. This simultaneous reversal could produce an extremely fast and powerful move to the upside.
The setup would be as follows:
BUY the breakout of the wedge (currently just a bit above 1700), or enter now with a stop loss at 1530, perhaps.
The first target would actually be 3000 (that's how powerful I think this move could be). If that falls, since so much accumulation already happened in the 3000-5000 area (kind of like Bitcoin's 6-7K), we might just head straight towards 5000.
If XLM cannot break out here, the next touch of the bottom of the wedge would likely occur in the 1000 zone (red X). A move down is possible, but XLM has exhibited some very strong buying power recently - not only on its recent bottom against Bitcoin, but during its bottoming period against the dollar, when it went as low as 7 cents.
This is not financial advice. Just a potential setup I'm seeing. Curious to see if it plays out.
-Victor Cobra
The setup would be as follows:
BUY the breakout of the wedge (currently just a bit above 1700), or enter now with a stop loss at 1530, perhaps.
The first target would actually be 3000 (that's how powerful I think this move could be). If that falls, since so much accumulation already happened in the 3000-5000 area (kind of like Bitcoin's 6-7K), we might just head straight towards 5000.
If XLM cannot break out here, the next touch of the bottom of the wedge would likely occur in the 1000 zone (red X). A move down is possible, but XLM has exhibited some very strong buying power recently - not only on its recent bottom against Bitcoin, but during its bottoming period against the dollar, when it went as low as 7 cents.
This is not financial advice. Just a potential setup I'm seeing. Curious to see if it plays out.
-Victor Cobra
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Just another point: The 7 cents bottom actually qualifies as a retest of its previous ATH. If it goes below that point, the future of XLM would probably not look too great to potential investors.
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Still looks fairly strong, despite the Bitcoin drop. USD chart for XLM leaves something to be desired, but if XLM can continue moving sideways, bulls will have an easier time pushing this above the wedge resistance:
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Getting closer. A little bit of positive price action today, but volume is still pretty pathetic, market-wide. We probably won't see volume come in unless some of these major resistances or supports are broken.
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Inching closer and closer....the resistance is now only in the 1650 area.
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Oh?
