XLM to $3.04? Key points of support and resistance


   In the larger sense

 

 I always like to zoom out and take a look at the charts from a macro viewpoint. Mainly because even in the middle of a bear market or bull run,there are always trends doing the opposite. The best example I can think of is currently the downward trend we have been in for almost the past 90 days. A lot of people have been calling it a bear market. And to be fair, a lot of coins are down anywhere from 50-75%. But I think if we zoom out and take it as a whole, we are actually on the way back up for a conitinuation of a huge bull run. One that could take ETH as high as 18k this cycle and XLM up to an ATH of $3.04USD!!! That’s right! I’m putting my head on the chopping block and calling it right now! Lol

        Not so fast!

 Before we can reach these lofty new predictions of an almost 1500% increase from current levels, there are some short term hurdles we need to get through first.  The first significant one is $0.24. I’ve attached a picture showing macro support and resistances for XLM. If we take a point from the bottom and draw a line all the way to the ATH using the daily candle chart, we can see some important Fibonacci levels. After reaching our previous ATH, we retraced all the way down and broke through the 0.786 fib at $0.238.  Currently we are on our way back towards this level for an attempt to break this resistance and turn it into support. If we are going to continue our upward push, this has got to happen. If we are rejected at the 0.786 fib, it’s gonna come back down to hell.26e440bb6fff526cd90e4bf7936d6102627889785aedc8bdf44e02c890589b20.jpg

   This chart will serve as our macro point of reference for this article . If we do go up,look for major resistance at the following

  • $0.35
  • $0.44
  • $0.52
  • $0.62
  • $0.79

 Before we look at the downside I have also attached a pic showing continued upside after breaking the previous ATH. Dollar amounts are inside the parenthesis and you can see the last fib we can get at this time is the 4.236 at $3.04.fb9f616de5ba743b2a2118316050a1e97e49f8fb05a1d965589b93119a5d044a.jpg

   The downside

  earlier we discussed the first major fib, the 0.786 at $0.24. If we take a fib from recent highs down to the low, we can see a micro fib showing resistance at $0.221. As stated earlier, if we can’t break through this .22-.24 cents range, then we should expect a pullback down lower. Looks like the first stop would be at 0.17 cents. I honestly don’t expect it to go any lower than that and feel pretty confident that’s the bottom. However a doomsday scenario would see XLM falling off the table back to .08 cents
0e9cae511d6f6efe4bb4e3b87512d969034400ec67d862f2656f01938b34491a.jpg

   TLDR

  At the end of the day, I am extremely bullish. I don’t think we will see an extended bear market or crypto winter. It’s my opinion this was a very large bear trend, with drops as big as extended bear markets. And the bigger the fall the higher the climb. I think we are at the base of the largest bull mountain we may have ever seen. I expect XLM to make a good run at $3, maybe even higher. Once we get up there a little ways, we can reassess the situation and get some new price points. How high? Currently XLM has a 5B market cap. Given the service they provide, I certainly feel a 50-100x is not out of the question for $10-$20/xlm($250-$500B MC)

   None of this is financial advice. Just my opinions. I ride a Harley and am a working shmuck like most of you guys. Always do what’s best for you and don’t base it off what biker trash has to say haha!

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Shovelheaddad
Shovelheaddad

I like crypto. How I got here I’m not quite sure. I went from a hard partying, outlaw motorcycle club member to a father of two, investing in crypto to achieve a better life for me and my two little boys


Confessions of a crypto enthusiast
Confessions of a crypto enthusiast

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