Today’s chart update will be on the XLM/BTC pairing which is in an interesting position, testing current local support with volume well below average, a break out move may be probable…
Points to consider, - Trend bullish, probable of new higher low - Price testing structural support - .50 Fibonacci acting as resistance - RSI neutral - Stochastics showing upwards momentum - VPVR showing decreasing transactions - Volume decreasing rapidly - EMA’s giving price resistance
XLM has had an insane bull move that corrected all the way down to the .786 Fibonacci level before retracing and trading in the now current rage. The trend is overall bullish as we do have consecutive higher lows in place; however this is in a parabolic manner.
Price is testing structural support, previous resistance; a break of this area will be quite bearish as market structure will then not be putting in a new higher high. Local resistance is at .50 Fibonacci level that needs to break upon respect of current support. If this level is broken then a test of the local highs will be more probable.
The RSI is quite neutral at current given time, it can break in any direction, really depends on the next move of XLM. The stochastics currently is projected upwards, we still have room for further upside potential.
The VPVR is interesting, showing us that the volume of transactions is decreasing on both ends, bullish and or bearish; the next move has a high degree of probability of being a flush move. Furthermore the volume itself is declining rapidly, telling us that a breakout is imminent in the near future.
The EMA’s are currently giving price resistance, is price fails to break the EMA’s then XLM will not put in a new higher high, the bullish market structure will no longer be in place…
What are your thoughts on XLM, is a breakout move imminent due to declining volume?
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And remember,
“Hope is bogus emotion that only costs you money.” – Jim Cramer