XLM Finally Bounces, and What This Means For The Market
Time for an update on one of my favorite coins. Unfortunately, XLM has truly suffered since the November breakdown. The good news is, we're finally bouncing. If you've been following me, you'll know that I suggested that XLMBTC would likely fall all the way towards 2000 after 3500 broke down. It's actually a good sign that we found decent support there, since it means that we haven't really broken our long term lower support on the Bitcoin ratio. We also made it to the 7 cents zone, which was the next level down I was looking at on the log chart once 11 cents broke.
From here, we can assume that we'll test at least the broken 2500 support as resistance. If that breaks, we'll probably test the major downtrend from the entire bear market (currently in the 3000-3100 area - my second green X). If that breaks as well, we will probably have a trend reversal for XLM. This coin has a history of making massive parabolic moves, so it would be good to pay attention to it. Despite the FUD, XLM is still once of the most widely used cryptocurrencies today, and it will likely attract some serious FOMO if the bull market returns.
Before we move up to 2500, however, we may have to test 2200ish again. A lot of alts are making some pretty wild up and down moves, which seems to be whale accumulation - flushing out retail sellers who are setting stop losses and taking supply from the market to make an eventual push up easier. This is just my bullish bias though. XLM has looked really weak recently, so it's always possible that we could just head back down. However, this current breakout has pretty massive volume, so I would give it some credibility. Additionally, I've seen XLM as a market leader during the bear market, and if we can have a sustained bounce that breaks some major resistances, it will be a good sign that the bear trend has ended (or is very close to ending).
This is not financial advice.
-Victor Cobra
From here, we can assume that we'll test at least the broken 2500 support as resistance. If that breaks, we'll probably test the major downtrend from the entire bear market (currently in the 3000-3100 area - my second green X). If that breaks as well, we will probably have a trend reversal for XLM. This coin has a history of making massive parabolic moves, so it would be good to pay attention to it. Despite the FUD, XLM is still once of the most widely used cryptocurrencies today, and it will likely attract some serious FOMO if the bull market returns.
Before we move up to 2500, however, we may have to test 2200ish again. A lot of alts are making some pretty wild up and down moves, which seems to be whale accumulation - flushing out retail sellers who are setting stop losses and taking supply from the market to make an eventual push up easier. This is just my bullish bias though. XLM has looked really weak recently, so it's always possible that we could just head back down. However, this current breakout has pretty massive volume, so I would give it some credibility. Additionally, I've seen XLM as a market leader during the bear market, and if we can have a sustained bounce that breaks some major resistances, it will be a good sign that the bear trend has ended (or is very close to ending).
This is not financial advice.
-Victor Cobra
Comment:
Unsurprisingly, given the state of the market, we slid back to retest 2200. It’s been successful so far, so if Bitcoin remains stable as it works on the 4K resistance, we should move up. However, volume is decreasing across the board (although still higher than when we were in the low 3K area). This is either a sign of bulls running out of steam or just simple consolidation. We’ll know on the next high volume move, which may actually take a while.
