Hey, friends hope you are well and welcome the new update on Stellar. In this video you will watch how:
Inverse Cup And Handle:
The price action of Stellar has started the completion of the handle and after this completion, the formation of the Inverse Cup & Handle pattern will be completed. The XLM has also a strong price-level resistance at $0.115. Therefore the rally can be up to this level.
The resistance of the channel is broken out:
On the daily chart, the price action of XLM was moving in a down channel. Recently the price action broke out the resistance of this channel. But the volume is very low. Therefore the price action is retesting the previous resistance as support. In the meanwhile, the priceline of Stellar has also crossed up exponential moving averages with the time period of 10 and 21. And EMA 10 is also crossing up the EMA 21. Now these EMAs and the bull cross between them can be helpful for the priceline to start the next rally to the upside.
SMAs on the daily chart:
On the same daily chart, it can be observed that previously the priceine of Lumens broke down the simple moving averages with the time period of 25, 50, 100, and 200. Now the price action has broken out the 25 SMA and moving with 200 SMA. The SMA 50 is also moving down to form a death cross with 200 simple moving average that can be coz of more sell-off.
Rising wedge pattern:
On the long term weekly chart, the price action of Lumens is like to have a very nice bounce from the support of a rising wedge pattern. Here the support of 50 SMA can be seen exactly at the same level where the XLM has the support of wedge. The 25 simple moving average is moving up to form a bull cross with 100 SMA and this bull cross is the reason that the sell-off is not getting increased due to the upcoming death cross between 50 SMA and 200 simple moving average on the daily chart. If we take a look at the MACD indicator then it has started turning bullish. The stochastic oscillator has also entered in oversold zone. Now if the stochastic will also give bull cross from here the price action can turn strong bullish. Then we can expect the rally in the next few days up to the resistance of the rising wedge. This resistance is at almost $0.115.
The price action has very good supports from daily to the weekly chart. However, the breakout from the channel on the daily chart is not backed by the strong volume. Therefore the price action is re-testing the previous resistance as support. In case of failure in re-testing, the price action may re-enter in the previous channel. However, so far I am expecting a rally up to $0.115 in the next few days.