XLM Holds The Downtrend Resistance As Support!
Another one of my favorite coins, and I've been using it in my trading challenge. I'm due for an update on that, but I'll post it separately. In my main portfolio, I've been slowly accumulating a little more XLM (added 20% to my stash through trading recently, using profits from ENG, BAT, and LTC).
In my trading challenge, I redistributed from NANO yesterday and I also added some to my main portfolio at 2406 when I saw it hold the high 2300 area like a boss. As long as we don't break back below that downtrend line (light blue), I think XLM should pop up towards the main triangle resistance from the bear market (between 2900 and 300), and if that breaks, head up towards 4200-4300 (triangle support from the bear market). Daily stoch has flatlined on the bottom as well. A giant breakout here would complete an ENORMOUS inverse head and shoulders pattern (drawn on this chart).
Additionally, if XLM moves convincingly above 13 cents, it'll be safe to say that the downtrend is PROBABLY over, and we should head back towards 18 cents pretty quickly, as there was little resistance between there and 13 cents on the way down (just like what happened with Bitcoin between 4.2K and 5.3K.
Doesn't have to play out exactly like this, but we'll see. Links to previous XLM analyses are below, including the ones where I called the breakdown from 3500 to 2000, as well as the rise from 2200 to 2900. I also suggested that if XLM rallied hard off that bottom, the whole market would likely be on its way towards a reversal.
This is not financial advice, and I'm not a professional financial advisor. What you do with your own money is up to you. You should always follow your own reasoning, but gathering insight from different sources can be helpful.
-Victor Cobra
In my trading challenge, I redistributed from NANO yesterday and I also added some to my main portfolio at 2406 when I saw it hold the high 2300 area like a boss. As long as we don't break back below that downtrend line (light blue), I think XLM should pop up towards the main triangle resistance from the bear market (between 2900 and 300), and if that breaks, head up towards 4200-4300 (triangle support from the bear market). Daily stoch has flatlined on the bottom as well. A giant breakout here would complete an ENORMOUS inverse head and shoulders pattern (drawn on this chart).
Additionally, if XLM moves convincingly above 13 cents, it'll be safe to say that the downtrend is PROBABLY over, and we should head back towards 18 cents pretty quickly, as there was little resistance between there and 13 cents on the way down (just like what happened with Bitcoin between 4.2K and 5.3K.
Doesn't have to play out exactly like this, but we'll see. Links to previous XLM analyses are below, including the ones where I called the breakdown from 3500 to 2000, as well as the rise from 2200 to 2900. I also suggested that if XLM rallied hard off that bottom, the whole market would likely be on its way towards a reversal.
This is not financial advice, and I'm not a professional financial advisor. What you do with your own money is up to you. You should always follow your own reasoning, but gathering insight from different sources can be helpful.
-Victor Cobra
Comment:
Although price has sagged down a bit, XLM is still above that broken downtrend, and the USD chart looks pretty good. Obviously, if we have a substantial drop here, we’d have to see how price reacts, to gauge whether or not we have really seen the bottom. NANO actually made similar moves after breaking out from its downtrend, so as long as XLM holds this general area, we can expect a push up and volume to come in.
Comment:
Last chance for a bounce here. Looking a lot weaker than I'd expected. If we break down, we should see a retest of the lows.
Comment:
Perhaps we can get a bounce on the descending red line. I guess we'll see. I tethered my entire balance for the trading challenge to practice risk management. This included NANO, XRP, and XLM.
