We have had a really solid break on XLM and this weekly candle looks quite . Like my ETH analysis, I want to zoom out a bit for some perspective since we could get a quick move up.
If we look at we see we are gaining momentum which would indicate this move is just beginning. What makes this move different from the candle in October or July? at this time was sloping down or flat. Where this time it's on a steady rise indicating buying pressure.
is sloping up, still has a ways from being in oversold territory.
With confirmation of these 2 indicators, we can now look for an exit point to the positions we took in XLM from 10-12.5 cents. First, we have already broken the minor overhead resistance points and are starting to break the next major one at the 18 cent area. Once this is broken, we will see a move up to the 30 cent area. This area will prove interesting, just like BTC broke through 6500 so easily, I wouldn't be surprised if we bust through this area rather quickly. As much as i want to see a move to .99 cents. I think for now our first target will be just below this 50 cent area. We have a major top there, it's a psychological point which should prove a resistance point, there are some overlapping fib points there.
What's tricky to gauge here is how quickly this will go up. If we examine XLM/BTC we can see that we are already getting a reversal here. As BTC dominance decreases and this picks up steam, this will help propel XLM to this 50 cent area. The below chart gives us an idea. XLM/BTC is sitting on this 78.6 retracement, is rebounding off oversold territory and is starting to turn. It's definitely primed for a move.
We'll target 50 cents to get out for now, and adjust if the market changes. But either way we'll be looking at booking profit and re-entering.
Happy trading and hodling,
previous entry where we started taking an XLM position.