The price action has started the formation of handle of the pattern that I also showed in my previous post as well.
Previously the of XLM coin broke down simple moving averages with the time period of 25, 50, 100 and 200. But now after turning the price action of Stellar has again broken out all these SMAs only 100 simple moving averages is left to be broken out.
On since 1st week of Aug 2020 the price action was moving in a . Finally the price action has broken out the resistance of this channel with massive buying . Moreover the exponential moving averages 10 and 21 also have formed bull cross with each other and providing good support to priceline of XLM that can be the big reason to increase the momentum.
In my previous articles I have been showing a pattern that is formed by the movements of of Stellar coin on weekly chart. Finally the priceline has bounced from the support of this pattern. The has given bull cross from oversold zone and has also started turning . Now we can expect a move up to the resistance of very soon.
There are many signals favoring that the momentum has been started and will be increased soon. Like breakout of the channel on , the formation and the support of . However the support of the is the basic market structure for XLM at the moment therefore we should keep an eye on this support.