Hey friends, hope you are well and welcome to the new update on Stellar.
As in my previous post, we have already seen that the priceline of XLM was bounced from the support of the rising wedge pattern on the weekly chart. The price action also had good support of 50 simple moving average as well. The 25 and 100 SMAs also formed a bull cross that helped the price action of Stellar to start this rally. Now at the same time, the 25 and 100 SMAs are also working as a strong resistance for candlesticks of XLM coin. If the price action won’t able to cross up these resistances of SMAs then it can again move down to the support.
On the weekly chart, the stochastic oscillator is still in the bull cross and this bull cross was formed after visiting the oversold zone. The moving averages conversion divergence (MACD) indicator is still turning bullish.
On the daily chart, the price action of XLM has started its move between an up channel. At the moment the price action is again at the support of this channel after getting rejected by the resistance. The priceline of Stellar is also using exponential moving averages 10 and 21 as support. Therefore we need to keep an eye on the support of this channel. Because if this support will be broken down then the priceline might move back to the support of the rising wedge on the weekly chart.
Even though the price action had a very nice bounce for the support of the rising wedge pattern but we should keep an eye on the 100 SMA resistance on the weekly chart. Because if the price action will be rejected by this resistance then the price action can move back to the support. And in case of breaking down the support, a big market structure for XLM will be broken down.