The price dump:
Today the price action of Stellar has been dropped more than 13% in a single day and after a recovery rally, it has moved at $0.39.
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Different indicators and oscillators:
On daily time frame chart, the MACD is turning more and more bullish and the stochastic is also strong bullish. But the price action is still moving below the EMA 10 and 21 daily. The directional movement index is bearish. Once the DMI will be turned bullish then XLM can start a powerful rally.
Broadening formation:
On the 2-day chart, the price action of XLM formed a broadening formation but this time the priceline broke down the support of this pattern. However, there are 100 and 200 simple moving averages additional supports and the price action is moving between the 100 SMA support and the support of the broadening formation which has turned into the resistance now.
Bullish Shark pattern:
On 4-day chart. The price action of XLM has formed a bullish Shark pattern and entered in the buying zone. The targets of this pattern are as below:
Buy between: $0.3809 to $0.2955
Sell between: $0.4876 to $0.6908
However, once the price action will move up from the potential reversal zone of this bullish Shark pattern then it can again move back into the broadening formation and can form a higher than the previous high. This time it can even cross the $1.
Conclusion:
Even though the Stellar has broken down the support of broadening formation but once it will turn bullish from the potential reversal zone of bullish Shark pattern it can again continue the previous broadening formation pattern.
Note: Above idea is for educational purpose only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade.
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Link for Binance exchange, the best place to buy or sell Crypto:
https://www.binance.com/?ref=11256882
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