Hi friends! Welcome to this update analysis on Stellar! Looking at the four hour XLM
chart, we can see that a breakdown from the ascending broadening wedge
(blue dashes) occurred, but XLM
quickly found support with the rest of the market, and popped right back up into the wedge
. However, I wouldn't get too excited, because the rally quickly stalled and we appear to be forming a lower high. Many people have said that this is a bull flag
, but I can assure you that it's not. If you look closely, you can see that there is actually a small head and shoulders
pattern forming, in what would be the flag. This is very similar to what I am seeing in many of the other coins that I cover, and it is an indication of further downside. Also, you can see that the 50 EMA
(in orange) is falling toward the price action. It has been fairly resistive lately, so it may continue to thwart any attempted rallies. Furthermore, it is currently converging with the 61.8% retrace, strengthening that level as resistance.
With that said, it does appear as though the bulls are attempting to put a bottom in the market. Like many of the other charts, there is a bullish divergence
that has formed on the MACD
. You can see that as price has made lower lows, the MACD
has made higher lows (dotted rising trendline
.) This is an indication of a broad shift in momentum, and can often be a precursor to an impending rally. So, perhaps we will see some sort of powerful rally soon, that will smash through all of the nasty overhead resistance in the market. Until that evidence materializes, we must NOT forget that the bears are in total control. On the downside, look for support at the bottom of the wedge
, and then the 78.65 retrace.
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-