Stellar Lumens XLM Can Move Up Soon From The Support Of Wedge

Stellar Lumens XLM Can Move Up Soon From The Support Of Wedge

By moon333 | moon333 | 12 Sep 2020


Hey, friends hope you are well and welcome to the new update on Stellar coin. In my previous article, we have seen that the XLM was having the strong support of 100 simple moving average, then the priceline started a more bearish move and at this time it is breaking down the 100 SMA support. Now the priceline of the XLM coin is at the support of a rising wedge pattern. Even though the rising wedge is considered as bearish reversal pattern among the trader's community but there are some optimistic indications I have observed. Now I am going to share these indications with you in this article and after watching these signals you can understand why I am in favor of a bullish move rather bearish.

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The SMAs support:

As you can see that I've also placed the simple moving averages with the time period of 25, 50, and 100 on this long term weekly chart. After breaking down the 100 simple moving average the price and has strong support of 25 SMA at the same time it is moving above the support of the rising wedge pattern as well. I am not expecting that the 25 simple moving average support will be broken down but in case it will be collapsed then the priceline has 50 simple moving average strong support and the price action can have a bullish reversal from this support as well. If we take a look at the Bollinger bands indicator then the lower bands of the bollinger bands is below the support of the rising wedge pattern, therefore, the price action has more cushion to drop more down. But the simple moving averages will stop the price action to reach up to the support of Bollinger bands. Now if we take look at the directional movement indicator then the positive directional indicator is still above the negative direction indicator in the ADX is up with the value of 26 that is a strong bullish sign on the weekly chart.

For the people who don't know about the directional movement indicator, I would like to tell them that whenever the blue line that is a positive directional indicator is above the orange line that is negative direction indicator then it is considered as a bullish or buying signal. When we have the orange line that is negative directional indicator above the blue line that is a positive directional indicator then it is considered as bearish or sell signal. The ADX shows the power of bears or bulls. For example, at this time we have the positive directional indicator above the negative directional indicator therefore the ADX is showing the power of bulls or buyers but if we would have the orange line that is negative directional indicator above the blue line that is the positive directional indicator then ADX would be showing the power of bears or sellers.

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What can be the best exchange or place to buy or trade XLM coin:

Well at this time Binance is ranked at No: 2 for Stellar's trading with 100% confidence of traders and highest liquidity rate and the largest trading volume as well, therefore I would suggest you to buy or trade XLM coin on Binance. If you don't have an account on Binance then click on the link or copy and paste it in your browser to create an account:

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https://www.binance.com/en?ref=11256882

 

Different moving averages, indicators, and oscillators on the daily chart:

Now if we switch on the daily chart then it can be easily observed that after breaking down the 100 simple moving average the price action is consolidated above the 200 simple moving average and now it is likely to move up from here. Here we should keep in mind that the priceline of Stellar is also having the support of the rising wedge pattern and the 25 simple moving average on the weekly chart as well. The moving average convergence divergence indicator (MACD) has turned weak bearish from strong bearish and if we take a look at the momentum indicator then it is also burned weak bearish. The stochastic indicator also has given bull cross from the oversold zone. Therefore all almost all indicators have started turning bullish on the daily chart.

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The bigger picture and pivot points:

Now I would like to show you a more bigger picture on the monthly chart. The protection of XLM was moving in a down channel and from the month of September 2019 the price action started moving sideways then it formed a double bottom and moved up and reached the 25 simple moving average strong resistance level. Here we also have the pivot point on the monthly chart. I have also placed the volume profile on the complete price action moving within this channel and up till so far. It can be easily observed that the point of control of the volume profile is at $0.07 Therefore the price action is moving around this point. It can be also observed that where the price action formed the double bottom at that level we also have the pivot 1st support on the monthly chart. Therefore we can consider this level as the final support level for the price action of Stellar.

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Conclusion:

Even though the price action of XLM is moving in a rising wedge pattern. But it is having very strong supports are the different moving averages on the weekly and on the daily chart. At the same time, priceline has the strong support of the rising wedge pattern as well. Sofar all the indicators are turning bullish on the daily chart. But the further bullish move to the upside depends on the continuation of this bullish momentum.

 

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moon333
moon333

Hi, My name is Atif Akbar and I am trading charts author of all kind of assets


moon333
moon333

Hi my name is Atif Akbar and I am one of the top 3 authors of cryptocurrency trading charts as per tradingveiw I publish there with my username moon333 to verify you can visit: https://www.tradingview.com/markets/cryptocurrencies/ideas/ I also publish the charts of different other assets like forex, commodities, CFDs Stocks e.t.c. Here you will find perfect predictions on different trading assets.

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