Formation of Shark:
On the weekly chart the price action of XLM has completed the formation of pattern. Even though it is difficult to identify that the initial leg is separate or the continuation of the previous movement because the upward movement up to X point Is not as that much long as we can easily declare it as a separate leg. However if we forget the previous movement of the price action and take it from the X point then a complete has been formed. And price action has already visited the potential reversal zone of this . Therefore there is possibility that the priceline will be dropped from here.
Movement in with synchronization with indicators:
On the the price action of XLM is moving within an . And after hitting the resistance of channel it is likely to drop down again. And the movement within this channel is very much synchronized with the combination of indicators: 1.momentum 2. 3. . If we take a closer look at the chart then it can be easily observed whenever the price action reaches at the support of this channel and momentum turns and also gives bull cross and finally when the positive directional indicator forms a bull cross with the negative directional indicator then the price action turns and reaches up to the resistance of channel. It can be seen in April and also in May 2020. At this time the positive directional indicator is above the negative direction indicator that is the sign. And the is also up that is showing the power of bulls. But now the positive directional indicator is moving down to form bear cross with the negative directional indicator. If this bear cross will be formed then the same will be assigned to the bears and it will be showing the power .
Support and resistance levels and moon phases:
After the mid of March 2020 the price action of XLM turned very strong and it broke $0.045 and then $0.06 resistance levels At this time the price action of Lumens has reached at the resistance of $0.08. This is very strong as on the chart it can be seen that since September 2019 the price action has made several attempts to breakout but so far it is not able to breakout this . I have also placed the indicator on this chart. This is very useful indicator to identify the and trends. On the chart we can see there are some full moons and some dark moons. The distance between one moon to another moon is called synodic cycle that is 29.5 days long. The recent dark moon is appeared at the of $0.06. That is an indication that it will be difficult for the priceline to break down this support. And the recent it appeared at the of $0.08. That is showing that the maximum reach of the price action is up to this level. Therefore we need the next dark moon to be appeared above the $0.06 level and the should be appeared more up in order to have break out from $0.08 resistance.
The Stellar is breaking out the falling wedge:
On the weekly chart since January 2019 the price action of Stellar is moving within a . I have also placed the on the complete protection moving within this pattern that is showing the traders interest up to 10 cent. And if we take a closer look at the then it is moved above the resistance of this pattern. Therefore it was easy for the priceline to cross up the . Now finally the price action of XLM has crossed up the resistance of the . And at this time the new is opened above this level but the breaking out from this pattern depends where this will be closed. If it will be completely opened and closed above this level then we will have a successful break out from this pattern. And after breakout if the price action will retest the resistance of this pattern as support then Stellar may drop up to 6 cents before the next rally.
Simple moving averages can form an opened alligator’s mouth:
If we watch the position of the different simple moving averages with the time period of 25, 50, 100 and 200 then we can notice that these SMAs are turning strong . If we take a look back at 2017 chart then it can be observed when the 25 crossed up all other simple moving averages and the 200 move below on others simple moving averages then a complete opened mouth was formed by these SMAs . That produced more than 4000% strong rally. Same as like that the simple moving averages are forming an opened mouth. At this time the 25 is moved above all other simple moving averages then we have 50 but so far the 200 is moving above 100 . And these two simple moving averages are moving sideways for the long time. Once the 100 will cross up the 200 then a complete opened mouth will be formed that can produce more powerful .
At the end I would like to recall the repetitive move and that is the formation of pattern on the monthly chart. If you take a look back at 2017 chart then the price action of Stellar formed the same BAT on the weekly chart. And when the Stellar moved up from the potential reversal zone it produced more than 4000% massive gains. This time the BAT is formed on the bigger time period chart. Therefore there is possibility that the priceline will produce more profit than the previous rally. However as per Fibonacci sequence of we can set our buying in sell targets as below:
Buy between: $0.11 to $0.059
Sell between: $0.23 to $0.41
So realistically as per above targets the Lumens can produce up to 600% rally.
As recently the price action of XLM has reached at the resistance of the channel that is formed on the and on the weekly chart the new is just opened above the resistance of the . Therefore there is a possibility that the price action will start a correction rally to retest the resistance of as support of and to hit the support of the channel as well. However after this correction rally a new move is expected.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.