Will it be to the upside...or downside? XLM has gotten back above the long term support today (in purple), but it's also pinching RIGHT below the downtrend channel resistance. XLM has continuously been one of the worst performing coins during the second half of the bear market. During the first half, it did relatively well. After reaching a bottom at 7 cents (confirmed by volume), it bounced all the way up towards 16 cents, only to be sold back below support. Since then. it has actually managed to get back above the support line. This is the second time it has done that recently. The first time it got back above support (May 15th), it went straight to 16 cents. This shows some strength, in my opinion.
At first, it seems bearish that Stellar hasn't had a sustained break out from its downtrend channel...but XLM has also bounced significantly more than some other alts since its recent bottom against Bitcoin, during which it reached an older long term support level. The bearish channel bottom is in the 5 cents zone. However, I need to ask myself...would more money be made on a rally to $1 and above? Or down to $0.05? While everyone is watching the new hyped coins (Matic, etc.), this may be an opportunity to take advantage of people who have fallen asleep on some of the established alts.
Looking at the graph zoomed in, we can see that this is the first time XLM has been pinched by these two long term resistance lines. It's time to make a decision. The first step would be for XLM to close this current daily candle green. After that, we could have a stab at the 18 cents resistance zone:
A potential trade setup would be to BUY the breakout above $0.135 to target $0.18, $0.25, $0.30, and then $0.90-$1.00. One could also buy if today's candle closes green above the support line. This is not financial advice. Since these two major trendlines are converging RIGHT NOW, I want to see if it causes a reaction, for curiosity's sake. Hence, this is only for educational and speculative purposes.
-Victor Cobra
At first, it seems bearish that Stellar hasn't had a sustained break out from its downtrend channel...but XLM has also bounced significantly more than some other alts since its recent bottom against Bitcoin, during which it reached an older long term support level. The bearish channel bottom is in the 5 cents zone. However, I need to ask myself...would more money be made on a rally to $1 and above? Or down to $0.05? While everyone is watching the new hyped coins (Matic, etc.), this may be an opportunity to take advantage of people who have fallen asleep on some of the established alts.
Looking at the graph zoomed in, we can see that this is the first time XLM has been pinched by these two long term resistance lines. It's time to make a decision. The first step would be for XLM to close this current daily candle green. After that, we could have a stab at the 18 cents resistance zone:
A potential trade setup would be to BUY the breakout above $0.135 to target $0.18, $0.25, $0.30, and then $0.90-$1.00. One could also buy if today's candle closes green above the support line. This is not financial advice. Since these two major trendlines are converging RIGHT NOW, I want to see if it causes a reaction, for curiosity's sake. Hence, this is only for educational and speculative purposes.
-Victor Cobra
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Here's another view with the resistance shifted over slightly. With this version, today's high actually stopped right at the resistance.
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Still struggling. We'll need to see what happens over the next several days.
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Bumping right up against that $0.135 resistance, and we’re again out of the downtrend. Let’s see how this unfolds :)
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Look at that pinch!
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XLM/BTC analysis:
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Still no real confirmed breakout. We were unable to hold above $0.13, and XLM is still in the bearish channel. Unfortunate, but that's the reality.
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Trying to get back above $0.13 now. It's pretty pathetic that it can hardly do that, even with Bitcoin above $9K. Let's see if it can finally have a confirmed break above the endless downtrend.
