Stellar Technical Analysis: (XLM/BTC) Positioning Well For A Bullish Reversal
Stellar Lumens is showing promising signs of a reversal against its BTC pairing, having spent the past 4 months in a bearish channel.
We saw it rebound well off the 0.618 fib support level at 2,600 Sats ($0.19 at current market value) around 6 days ago and now it’s attempting to break through the well-tested resistance at 0.5 fib level at 3,330 Sats ($0.25).
This will be a key moment to observe when determining an entry point to buy; if trading volumes are too thin and XLM loses its momentum above the resistance, then we could likely see XLM return back to the support line beneath. You will want to hold out until the bullish breakout above the line is confirmed.
There’s a lot of bullish sentiment gathering at the moment for XLM, with expanding Bollinger Bands showing promise after a week-long contraction phase. Expanding Bollinger Bands typically follow bullish breakouts and indicate high volatility as the asset gains support against the sellers.
We can also see a converging “Golden Crossover” between the 50/200 moving averages. This is also a good indication of an imminent uptrend.
Looking at the depth charts on Binance for , we can see further confirmation of a mounting bullish orderbook. The green wall on the left clearly showing a stronger buy wall than the opposing red wall. It’s worth mentioning however, that buy and sell walls should not be used solely to confirm an asset’s trend, as these are fluid indicators and often change rapidly as orders are cancelled or filled. An asset that may look bullish at first glance can quickly turn bearish as bids and sells are altered or removed from the orderbook.
Stellar (XLM) Price Prediction
At the time of writing, XLM is down -4.07% but looks hopeful to recover its losses quickly and break above 0.5 fib level. If it’s successful, we can anticipate the next price point around the 0.382 fib level region at 4,000 Sats ($0.30) before expecting a correction. Keep an eye on your MACD, Stochastic and Williams R% indicators to identify the overbought moment. For any traders looking to intraday trade here, consider your exit point just below the fib level to ensure there’s enough demand to fill your orders.This article appeared first on Cryptovest
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.