Stellar Lumens vs. Bitcoin Trend Reversal - XLMBTC, XLM, XLMETH
XLM/BTC has been rangebound for nearly a year. This week, from May 10 - May 14, XLMBTC probed outside of its range before breaking out and closing at a new 1 year high. This generated a BUY signal for me in XLMBTC, and I am ID'ing the pattern as a Head and Shoulders bottom (trend reversal).
Price would need to move below the low of the week to negate this signal, and hence I view this as a low risk entry opportunity, assuming no major liquidity concerns.
I also view the XLM/ETH chart as constructive.
Stellar's website describes it as a fast, open-source blockchain network for payments and currencies. In short, it attempts to connect financial institutions while providing cheap transactions. Coins with faster, lighter (and albeit less secure) transactions than those on the bitcoin network are gaining exposure after Elon Musk tweeted that bitcoin uses too much energy. Musk also noted that Tesla was not selling the bitcoin it purchased as treasury reserves, but that the company is looking for cryptocurrencies that are more "environmentally friendly" to be more in-line with Tesla's overall mission statement.
XLMBTC
Price would need to move below the low of the week to negate this signal, and hence I view this as a low risk entry opportunity, assuming no major liquidity concerns.
I also view the XLM/ETH chart as constructive.
Stellar's website describes it as a fast, open-source blockchain network for payments and currencies. In short, it attempts to connect financial institutions while providing cheap transactions. Coins with faster, lighter (and albeit less secure) transactions than those on the bitcoin network are gaining exposure after Elon Musk tweeted that bitcoin uses too much energy. Musk also noted that Tesla was not selling the bitcoin it purchased as treasury reserves, but that the company is looking for cryptocurrencies that are more "environmentally friendly" to be more in-line with Tesla's overall mission statement.
XLMBTC
