Stellar has seen some much needed tailwinds in this enduring break market through the likes of IBM and its tie up with XRP which should bode well in the long term due to its solid fundamentals. However XLM has seen a dramatic increase from around 10.5 cents to 11.5 and has since corrected to around 11.1. While many people are jumping upon this opportunity to create longs at this moment, I definitely am a little skeptical and unconvinced. Notice the dramatic bearish divergence on the RSI and MACD which creates an unhealthy setup. Price has begun to fall and RSI has also began to fall which gives us a relatively convincing trend reversal signal. On the other hand the MFI indicator which depicts momentum and volume has also started to become sluggish through the creation of bearish activity. The lower lows and lower highs suggest a correction in the offing which may bring it back to 10.5-10.6 cents where its lucrative to accumulate.
I do expect a imminent correction/retracement. Let me know what you guys think, would love to hear any feedback or constructive criticism
I do expect a imminent correction/retracement. Let me know what you guys think, would love to hear any feedback or constructive criticism