Time for Stellar (XLM) to shine! (T.A.)
Time for Stellar (XLM) to shine! (T.A.)

By raven | Investment | 11 Nov 2019


I have been covering Stellar Lumens (XLM) in my last posts, since the burning of half the supply exactly one week ago and following up with my disappointment when I saw that the market did not respond with a 100% increase. Despite the lackluster reaction of the market, I said, however, that we could still see some gains for XLM. Crypto markets are inefficient, but eventually they reach good valuations.

Now, look at this beautiful parabola that XLM is forming:

351665157-52aa18c54b7ecd4a814be478ee9aed3cb3f6a028f94aaad68b338217f44a65d2.png
XLM/USD daily price chart

It couldn't get more bullish than that, and it is only more reassuring when we do have fundamentals backing it (the supply cut). We are currently trying to break above the Fibonacci 0.382 retracement level.

351665157-6007fa0537bc08649bc9db8bf0e75cfaacc074ab8e13416e36501fc0f7464908.png

XLM/USD Fibonacci retracement

We have failed twice so far, so we need to overcome this level (0.080506 USD) on the next attempt to confirm the bull run. Then we will be met with resistance again at the 50% Fib. level (which we have failed also twice since September) at 0.089192 USD. The next points of resistance on the Fibonacci retracement will be at 0.097878 USD, 0.110245 USD and 0.125998 USD. From there, which according to the parabola will be met around December 19th, we have a free run until 0.17 USD, in the Fib. 1.618 level.

351665157-144221f3893949c8df2d82ac3daa06b74a86fcdd9b50c88516d6ced148f5607a.png

MACD on the weekly chart

351665157-8abea90c7fddf9b96fe3c00a6031399c789e54137ab0cbcea446e4b2460a47a0.png

Squeezed momentum

On the weekly chart, the MACD and the squeezed momentum indicators look quite bullish, but the stochastic RSI is in the oversold zone, but it has stayed in that zone for a while in a previous moment:

351665157-34a143e4dee77c983a9b18db5248c23e32d38a3ab651c7dc8c682a82b7f876af.png

Stochastic RSI

Summary

Considering the joint signals of technical indicators and the fundamentals (XLM supply cut in half), we might have the setup for a good recover for XLM. A gain of 100% over the price previous to the burning announcement on November 4th would mean a value of 0.14 USD, which would be completely justified theoretically. This value is in the large zone between the 100% and 168% Fibonacci retracement levels, a little bit above the end of the parabola drawn in the charts above. Are we getting that high? We cannot say for sure, of course, but my guess is that we will get close.


raven
raven

I've heard of bitcoin a long time ago, but only recently I became interested in investment in general, which brought me to the world of cryptocurrencies. I am also interested in learning to develop blockchain applications.


Investment
Investment

In this blog I will talk mainly about cryptocurrencies and other forms of investment. The intention is to share and discuss ideas, so do not take any of this as investment advice.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.