XLM Stellar Lumens/USD starts intra-day bearish trend, Analysis
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XLMUSD recently started a bear trend after a failed bullish breakout, because of its insufficient volume to support it. The uptrend trendline also recently broke and is currently resistance. The 30 cent area is reinforced with a 20-period Moving Average and a Fibonacci Line, therefore a breakout there will need to be incredibly strong.
While the bear trend continues, the first retracement is very likely at the 26-27 cent area, where strong support resides and was hit 3 times(see green circles in diagram) and also a Fibonacci line. We can take partial profits here.
After, we have 2 scenarios. The 26 cent support will halt the bear trend and force the price to consolidate, or the price will slightly pull back, then it will break the support and the downside will continue all the way to 24 cents, where a Fibonacci line resides. If the second scenario happens we will see at least a 16% profit. Then, the trend ends there.
Of course, eventually, a downtrend meets an uptrend. In the second scenario, we can expect an uptrend to 30-40 cents after the price hits 24 cents.
Just a side note: XLMUSD is very volatile, moving 5% to 10% in a few hours. Just be careful. Plan your trade, trade your plan.
Thank you for reading! Anything you disagree with? Comment it down below! I would really appreciate it! Don't forget to follow @Trader_ph and like this post!
XLMUSD recently started a bear trend after a failed bullish breakout, because of its insufficient volume to support it. The uptrend trendline also recently broke and is currently resistance. The 30 cent area is reinforced with a 20-period Moving Average and a Fibonacci Line, therefore a breakout there will need to be incredibly strong.
While the bear trend continues, the first retracement is very likely at the 26-27 cent area, where strong support resides and was hit 3 times(see green circles in diagram) and also a Fibonacci line. We can take partial profits here.
After, we have 2 scenarios. The 26 cent support will halt the bear trend and force the price to consolidate, or the price will slightly pull back, then it will break the support and the downside will continue all the way to 24 cents, where a Fibonacci line resides. If the second scenario happens we will see at least a 16% profit. Then, the trend ends there.
Of course, eventually, a downtrend meets an uptrend. In the second scenario, we can expect an uptrend to 30-40 cents after the price hits 24 cents.
Just a side note: XLMUSD is very volatile, moving 5% to 10% in a few hours. Just be careful. Plan your trade, trade your plan.
Thank you for reading! Anything you disagree with? Comment it down below! I would really appreciate it! Don't forget to follow @Trader_ph and like this post!
