Looking at the cryptocurrency Stellar
, we can see that it's had a strong move higher, in a series of bull flags. However, it is trading inside of a technical pattern, known as an ascending broadening wedge
(shown in dashes.) This is typically a bearish pattern
, that eventually results in a breakdown from the bottom side of the wedge
. That's significantly lower from current levels, and given the apparent rotation into cheaper coins, Stellar
could defy the technicals and break out of the top side of the wedge
. However, I think that is unlikely to happen. The most likely scenario, is that Stellar
finds resistance at the top side of the ascending wedge
, before beginning it's descent.
Remember, when you want accurate technical analysis
, turn to your trusty ol' friend, the MagicPoopCannon!
Happy New Year!