Hey friends, hope you are well and welcome to the new update on Stellar. In this video you will watch how:
The price action has started the formation of the handle of the Cup & Handle pattern that I also showed in my previous post as well.
Previously the candlesticks of XLM coin broke down simple moving averages with the time period of 25, 50, 100, and 200. But now after turning bullish the price action of Stellar has again broken out all these SMAs only 100 simple moving averages is left to be broken out.
On the daily chart, since the 1st week of Aug 2020, the price action was moving in a down channel. Finally, the price action has broken out the resistance of this channel with massive buying volume. Moreover the exponential moving averages 10 and 21 also have formed a bull cross with each other and providing good support to priceline of XLM that can be the big reason to increase the bullish momentum.
In my previous articles, I have been showing a rising wedge pattern that is formed by the movements of candlesticks of Stellar coin on a weekly chart. Finally, the priceline has bounced from the support of this wedge pattern. The stochastic has given bull cross from oversold zone and MACD has also started turning bullish. Now we can expect a move up to the resistance of wedge very soon.
There are many signals favoring that the bullish momentum has been started and will be increased soon. Like breakout of the channel on the daily chart, the cup & handle formation, and the support of rising wedge. However, the support of the rising wedge is the basic market structure for XLM at the moment therefore we should keep an eye on this support.