Is #XLM Setting Up for a Bull Trap Before a Major Drop?

Mar 15

Yello, Paradisers! Is XLMUSD gearing up for a breakout, or is this just a classic liquidity grab before the next major dump? Let’s break it down.

💎Right now, #XLMUSDT is testing a minor resistance at $0.28464, a level where price has repeatedly struggled to push higher. While there is a possibility of a breakout, the presence of strong liquidity around the unmitigated supply zone at $0.31917 suggests that any move higher could be a trap before a significant drop. If price does manage to break above this resistance, traders should be cautious it’s likely just a liquidity grab before a larger move to the downside.

💎Once the price reaches the unmitigated supply zone, a rejection is expected, leading to a downward move toward the key support zone at $0.22699. This level has historically been a strong demand area where buyers could step in, potentially causing a temporary bounce or consolidation before any further downside.

💎As XLM moves lower, it’s crucial to watch volume activity. If the decline happens with high volume, it will confirm strong selling pressure and increase the likelihood of a deeper drop. However, if the price approaches $0.22699 with low volume, it could indicate a lack of seller conviction, leading to a short-term bounce before resuming the downtrend.

💎The EMA 200 continues to act as dynamic resistance, reinforcing the bearish outlook. As long as price fails to hold above $0.28464 or gets rejected from the supply zone, the bearish setup remains intact. In that case, a move toward $0.22699 and potentially even $0.19151 becomes highly probable. Watching volume reactions at these key levels will be essential to confirm the next move.

💎The only scenario that could invalidate this bearish setup is a strong close above $0.36172 with high volume. That would signal a potential shift in market structure and could indicate renewed bullish momentum.

Paradisers, patience and precision are key in this market. Let the levels guide you, trade strategically, and stay disciplined. Avoid emotional decisions this market punishes the impatient and rewards those who stay focused.

MyCryptoParadise
iFeel the success🌴

Apr 7

Trade active

💎 From Prediction to Profit: ETCUSDT has just hit our projected support level with 30.34% nd is still looking good.

💎 Once you step into the realm of precision, there’s no looking back. It’s a journey of consistent wins, a commitment to excellence, and a stride in the league of victors.

Apr 22

Trade closed: target reached