The SMAs formed opened mouth and priceline is trying to breakout the key level resistance:
If we place the simple moving averages with a time period of 25,50, 100, and 200 on the . Then it can be seen that the smallest time period moving average 25 is above all then we have the 50 then 100 and then 200 below are all the SMAs . On the 12th of June, a complete opened mouth by the simple moving averages was formed in the meanwhile the price action was in the correction mode. After correction rally, the price action re-tested the support of 100 and started a powerful rally. At this time price action is trying to break out the powerful resistance of 10 cents. That is the key level resistance for the price action of XLM . During the correction rally, we can also see that the 25 crossed down the 50 and now it is up again.
Here I would like to take you on the Aave token chart. When back in November 2019 the Lend token had complete formation of open mouth by the simple moving averages on the . The price action started a correction rally the same as like we have seen on the XLM chart. And used the 100 as support and started and after breaking out the key-level resistance of 0.00000268 btc the price action rallied more than 2100%. So we can expect once the Lumens will be able to break out the key level resistance of $0.10. Then it can produce big gains the same as like the Aave token.
A big pattern:
Now at the end of this article, I would like to recall a very big pattern that I have been sharing with you since last year. And that is the price action of XLM has formed a very big move. This is a kind of reparative move like the Stellar formed a back in 2017. When it started the rally for more than 4000% gains. But that was formed on the weekly chart. This time the price action has formed a big BAT on the monthly chart.
So we can expect a more powerful move than the previous one. However, 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
A big Butterfly:
If we watch the Stellar with Bitcoin pair then it has formed a very big pattern on the two-week chart.
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And the targets as per Fibonacci sequence of can be as below:
Potential reversal or buying zone: 0.00001369 to 0.00000380 btc
or sell zone: 0.00002141 to 0.00003986 btc
Stellar has a good history to produce powerful rallies based on the moves. Therefore we can expect that this time it will repeat the history again. However, the charts I have shared with you are long term. Therefore this move will need some patience.
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.