If you know me, and you follow my Stellar posts, you KNOW that I've been calling for a breakdown of this ascending broadening wedge formation. WOW WOW WOW! It's finally happening. Let me just pull a quote from my "Genius Calls in Stellar" post. "You can see that the [head and shoulders] price target is right at the 78.6% retrace. I've been saying for WEEKS, literally, that the overall pattern here, which is the ascending broadening wedge (in blue dashes) should produce a break to the downside. Now, we have a head and shoulders with a price projection below the lower trendline of the wedge . How insane is that?" Technical analysis can be so unbelievable. The lesson here, is that the largest pattern on the chart, always trumps the rest. So many people said "why do you have that 'huge failed breakout' thing up there?" As I said before, it was to show that the overall pattern was trumping an attempted breakout. The ascending broadening wedge is a bearish pattern that usually produces a breakdown. Judging by the height of this wedge, if it corrected to just a fraction of it's true potential, it would render XLM worthless. I find this so interesting, because XRP also has formations that would send it to zero, in a full scale correction. For those of you who may have no idea what I'm talking about, I'd like to draw your attention to the orange dotted vertical trendline on the chart. That's actually a measurement of the height of the wedge, which has been subtracted from the breakdown zone. Only a fraction of the measurement is showing, because the rest of it is far below zero. I'm not saying that XLM is going to zero. I'm just showing you that this is how analysts find price targets. The size of the structure in front of me, easily suggests a price of zero. However, I will be modest. I say that, for now, we look to the 78.6% retrace for support. If that level breaks, we will reassess the downside potential.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
If you'd like to see how I called the top in XLM, check out this chart...
are you even optimistic about the whole crypto-currencies? you may answer that you only look at facts, data and analysis. But I mean in general do you believe in crypto, or do you have enthusiasm for its technology?
rohitphoenix
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Thanks but can you specify the bottom like me?
24.5 cents is the bottom from what I can see.
Marks the completion of 5-3-5 correction.
Always (and unfortunately) sobering reading your TAs lol ... will you ever bring us good news haha
Thanks for your time man, even though I'm huddled in the corner whispering hodl to myself
jmgardner
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I can't wait to read you postposts when the bulls are back
Zeonbe
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update
Znarfomat
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Thanks for the analysis! However, if you look at the XLM/BTC chart couldn't you say that it was a successful breakout and what we now see is a bullflag?
I think many traders look only at the x/BTC chart.
cc247
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Update?
SamTaheri
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thanks for sharing with Us,. and thanks for ur time,,