The 100 can be used as support:
Now if we watch the movement of the price action with the combination of this channel and the simple moving averages then it can be noticed that previously in the month of June 2020 when the priceline broke down the support of this channel we had the recent support of 100 below the price action. The priceline of Stellar used 100 as support and re-entered in the channel again. At this time after breaking down the support we have again the 100 as recent support below the priceline, therefore we can expect that the price action will be moved at least up to 100 that is at $0.085 at the time of writing.
This re-test can lead to a powerful rally to upside or downside:
Now if we switched to the long-term weeky chart and place the 25, 50 and 100 simple moving averages. Then we can notice that from April to May 2020 the price action broke out the 25 and 50 simple moving averages and in June 2020 the priceline of XLM re-tested the previous simple moving averages with the time period of 25 and 50 as support and started the next rally to the upside. Now the price action has broken out the 100 and this time it is retesting the 100 as a support like it has done before. Therefore this movement of Stellar is very important. Because if this retesting will be successful then XLM can start the next rally to the upside. But if the price action will be failed to retest the 100 as support then we can observe a further down side rally up to the 25 and 50 simple moving averages. These moving averages are almost at $0.06 at the time of writing.
Now if we watch the different levels on the . Then it can be clearly seen that the priceline of Stellar has been rejected by the $0.11 resistance. After the rejection the priceline broke down the 10 cents as will this time it was working as a support. At the moment the price action is at the support of $0.09. Now there are two possibilities one is the priceline may start the formation a new between the $0.09 to $0.10. Second If the $0.09 support won’t be retained then the price action of XLM can further move to the downside at the support of $0.065.
This Big Move Can Lead The Stellar To Achieve Highest Price Ever:
At the end, I would like to recall a very big that has been formed on the monthly chart by the priceline of Stellar . This is a kind of repetitive move as the price action of XLM formed BAT previously in the year of 2017 on the weekly chart and produced more than 4000% rally. Same as like that move the price action has again formed another . At this time the pattern is bigger than the previous one. Therefore we can expect more powerful rally on the long-term. But realistically as per Fibonacci sequence of the targets can be as below:
Potential reversal or buying zone: 0.110 to 0.059
or sell zone: 0.23 to 0.41
As the price action is retouching the 100 on the long-term. It can be e a very positive gesture but on the other side it can be a very critical as well. Because if the price action will successfully retest the 100 then definitely there will be a powerful rally, but if the 100 will be broken down then a powerful to the downside can be started. Therefore it is very important to keep an eye on the movement of the price action above this moving average.