XLM is one coin where I believe the bear market is over and I posted as such at the bottom in March. Note how the price broke out of the red channel, retested it (yellow wave4) and bounced hard. Just textbook
However, every rally needs to correct and I believe the 1st macro wave of a new bull cycle appears done
- 5 waves (yellow) appear to be done
- 5th subwave of the 5th wave looks like an ending diagonal
- We hit 0.5Fib retracement (dotted red line) of the entire move down
- Bearish divergence where RSI made lower lows
- Expecting a drop to green box which is 0.5Fib - 0.618Fib zone
- The drop could be a 2nd retest of the red channel
Confirmation for this idea is when the green support line is lost
From Weekly Support/Resistance level
- Hit resistance at 0.5Fib and rejected
- Next major support at 1st blue line, expect a small bounce there
- RSI overbought levels highest since April '18, expecting a cool down and drop to 50
- RSI needs to stay above 50 for bull market continuation
However, every rally needs to correct and I believe the 1st macro wave of a new bull cycle appears done
- 5 waves (yellow) appear to be done
- 5th subwave of the 5th wave looks like an ending diagonal
- We hit 0.5Fib retracement (dotted red line) of the entire move down
- Bearish divergence where RSI made lower lows
- Expecting a drop to green box which is 0.5Fib - 0.618Fib zone
- The drop could be a 2nd retest of the red channel
Confirmation for this idea is when the green support line is lost
- Hit resistance at 0.5Fib and rejected
- Next major support at 1st blue line, expect a small bounce there
- RSI overbought levels highest since April '18, expecting a cool down and drop to 50
- RSI needs to stay above 50 for bull market continuation
