Analysis: A Price Breakout of Stellar (XLM) May Result in a Strong Bullish Signal

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Analysis: A Breakout of Stellar (XLM) May Result in a Strong Bullish Signal
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XLM/USD Medium-term Trend: Bearish

 
Analysis: A Price Breakout of Stellar (XLM) May Result in a Strong Bullish Signal
Supply levels: $0.25, $0.26, $0.28
Demand level: $0.24, $0.23, $0.22
Stellar is bullish on the 4-Hour chart. On September 18 the bears increased their momentum and bottomed the XLM price at the demand level of $0.23. Further decrease in price was rejected by the bulls which resulted in forming bullish pin bar which rallies the coin to the north where it broke the supply level of $0.24. Top tweezers candle was formed to reject the price increase by the bears. The price started decreasing from the top of supply level of $0.25 to the demand level of $0.24.
The market has formed “descending triangle” pattern which connotes the high probability of the XLM price break out to the south. Although a breakout at the upper trend resistance line area will be a good buying opportunity or a breakdown at the lower trend support area will be a selling opportunity.
XLM is trading between both 10-day EMA and the 50-day EMA. It suggests a price consolidation is ongoing. However, the RSI 14 is above 40 levels with signal lines pointing to the north which indicate buying signal.

XLM/USD Price short-term Trend: Bearish

 
Analysis: A Price Breakout of Stellar (XLM) May Result in a Strong Bullish Signal
On the 1-Hour chart, the coin is bearish. Just after the rejection of an increase in the price of Stellar. XLM started moving down gradually to the support level of $0.24.
Today, the price reached the upper supply level of 0.24 and the XLM price has formed “Descending triangle” pattern, in which breaking out from either up or down is a profit-making action.
Should the bears increase their pressure and there is a break out from the bottom trend line of the triangle the price may break the demand levels of $0.24, $0.23 and expose $0.22.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.