Home Crypto Crypto Market Analysis XLM/BTC Bounce or Break?

XLM/BTC Bounce or Break?

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Stellar (XLM)

Market Cap. $7.11B

Circulating Supply: 18.57B XLM

Max Supply: 0 XLM

Volume (24h) $55.19M

 

The XLM/BTC drops significantly after another false breakout above a dynamic resistance. It almost hits a dynamic support. A valid breakdown will confirm a further correction in the short term. Right now it will be better to stay away from this pair because we don’t have a great trading opportunity, but I really hope that we’ll have one very soon.

stellar charts

The XLM/BTC almost reaches the sliding parallel line (SL2) of the ascending pitchfork. A false breakdown below this dynamic downside obstacle followed by an important increase will signal a further increase in the upcoming days

However, a valid breakdown will send the rate to at least the lower median line (LML) of the ascending pitchfork. Support can be found at the 0.00003676 former low. A further increase will be invalidated after a breakdown below the lower median line (LML).

We still have a bullish perspective as long as the rate stays within the ascending pitchfork’s body. It will approach and reach the median line (ML) only if it will make a valid breakout above the sliding line (SL1) of the ascending pitchfork.

Personally, I believe that the rate will take out the support from the lower median line (LML) if will reach it and if will close on it.

Conclusion

I still believe that the crypto pair could increase in the upcoming period if will stay above the SL2. A drop below it will signal a high selling pressure and a larger drop. You could try to buy the retreat if the price will stay above the SL2.

©Forex.Academy

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