XLM' was one of the strongest coins in 2018, until november it was holding it's levels while the rest of the market tumbled. But lately it has played catch up as well. Now it is starting to look like there is a chance the low is being set, at least a temp low.
There is divergence on the right and left. Volume profile is a bit bullish as well it seems. On the left we can see volume being low as well on the daily with the drop the past month. Normally when a bullish wedge breaks down, we see a sharp decline with high volume. The drop was there (but should have been bigger) and it was not a fast drop, also low volume.
The yellow on the left show low volume with a big drop and the right one shows double the volume with half the drop. Suggesting some(one) are accumulating. In combo with a potential wedge, there are several factors now in favor of the bulls. Cant say if we follow the blue line, meaning if we make another drop before going up. Obviously depends on what Bitcoin will do'.
That first red zone on the left is a level to break and the second one is that trend line. If we see a good rally coming days shooting back up above the trend line, than it will most prob be a confirmation of a big bear trap. Today's candle could also become a buy signal if we see it move higher. Today's volume candle is also reaching a decent level, but want to see it reach that green zone there. That would also be a good confirmation of this all.
Please don't forget to like if you appreciate this :)
Thanks for sharing. My feeling is this is the bottom for XLM....
This was my idea couple of months ago.
botje11
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@hjschaap, Your welcome, and nice job as well btw, good luck :)
Will_Wortel
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@botje11, Bedankt man. Ik lees je analyses met veel interesse
ALSTRS
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tabsports
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I bought a moderate amount of XLM a few days ago on a TRX swing. Looks like TRX was overbought on the weekly on Binance, while XLM was oversold on the daily. (Both in BTC trading, for the record.) I'm glad to see other analysis confirm (to an extent) my ideas. What I'm still in the dark about is if this bottom would be short or long. More confident on the USD bottom being close, but XLM/BTC has previously held up to the resistance around 2100 sats for a multi-week span in March. If it falls below that, things could get rough. So my current plan is to play it short and take even moderate gains if possible.
DeadCatCapital
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stellar is a sleeping giant
SocialCryptopreneur
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@botje11 - I very much enjoy your work, as you know. I have noted that you tend not mention Fibs, but curious if you follow them. On XLM, I noted in the selloff from roughly .27 USD to .0127 USD that the 23 Ext and the 38 extension were, respectively .0909 and .079. XLM bounced up from .0909, and is now testing the .38 ext. It seems like this is boding well for a temp bottom, at worst, and possibly "The" Bottom moving forward. We shall see. Great analysis as always!
botje11
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@SocialCryptopreneur, Thank you, but unfortunately the wedge failed, something that does not usually happen. I actually don't use Fibs, not that i don't think they work, but it becomes a distraction for me, just like any other indicators. I know they work, but using them the proper way is not easy. But also knowing when an indicator is giving a false sign is difficult. It is can get back in the wedge within 24h, it could be a false breakout
This was my idea couple of months ago.