Yesterday Stellar had a big event of unofficial 5 Billion VWV tokens airdrop. The tokens were distributed as an airdrop to Stellar (XLM) holders based on a snapshot of the Stellar blockchain on July 16, 2020. So if you are a Stellar holder then you should visit the below link for more updates.
A big distance between priceline and SMAs:
Now if we watch the live daily chart then priceline of XLMd has broken out all simple moving averages with a time period of 25 50 100 and 200. Now there is a big distance between the price action and these moving averages. Therefore this situation is a bit critical because if the price line will start a correction rally then it will need to move down up to the nearest available simple moving average to use it as a support. However, if the moving averages will be moved up to provide the support to the price action of Stellar coin then we can witness a further upward rally from this level.
Why the priceline is stuck at $0.10 level:
Now if we take a closer look at the chart then we can understand why the price action is not able to move up from this level. The 1st reason is that the price action is moving in an up channel and hitting the resistance.
The other reason is that the price action is struggling at the price level resistance of $0.10. This is a very strong resistance level same as like the 10,000 resistance level is strong for the Bitcoin.
The stochastic and MACD:
Now if you watch the moving average convergence divergence (MACD) indicator then it was strong bullish but now it has turned weak bullish. But the stochastic indicator has again given bull cross after the bear cross. Therefore we can expect the moving average convergence divergence can again give the strong bullish signal. And as the price action is already at the resistance of the channel if we will receive the strong bullish signals by the MACD as well then the priceline can break out the resistance of the channel.
A big repetitive harmonic move:
Now I would like to draw your attention towards a very big bullish harmonic repetitive move by the priceline of Stellar. Previously the priceline of XLM formed such kind of harmonic move back in 2017 and produced more than 4000% gains. And that is the formation of a big bullish BAT pattern on the monthly chart. This time the pattern is bigger than the previous one. The buying in sell targets as per the Fibonacci sequence of bullish BAT can be as below:
The potential reversal or buying zone: $0.11 and ends up to $0.059
The Fibonacci projection of the sell zone: $0.23 to 0.41
The price action of the Stellar coin is moving in a very big potential reversal zone of harmonic pattern. Therefore we can expect that it can be more bullish in the future than Bitcoin and other coins as well. And it can also behave opposite to the movement of Bitcoin.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
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