This Is Why I Was Bullish On Stellar (XLM) | Watch How It Can Hit $5

in DLIKE2 months ago

Hi guys and gals hope you are doing good and welcome to the new update on Stellar coin. The price action of Lumens is moving within an up-channel since March 2020 on a daily chart. On the 19th of June, the price action broke down the channel’s support, and while re-testing the previous support of channel as resistance the price action re-entered in the channel and even moved up to the resistance. If we watch the moon phases indicator then the previous dark moon appeared below the support of this channel at a very big distance. Therefore the price line reached up to that level and broke down the support. Now the new full moon has appeared above the resistance of the channel that is a positive signal that the protection can reach up to this level. Now if we take a look at the directional movement indicator then a positive directional indicator (the blue line) is above the negative directional indicator (the orange line) and the ADX (The red line) is up with the powerful value of 43. At this time the ADX is showing the power of bulls because the bullish line of positive directional indicator is above the bearish line of negative direction indicator.

 

The SMAs formed opened alligator mouth and priceline is trying to breakout the key level resistance:

If we place the simple moving averages with the time period of 25,50, 100, and 200 on the daily chart. Then it can be seen that the smallest time period moving average 25 is above all then we have the 50 then 100 and then 200 simple moving average below are all the SMAs. On the 12th of June, a complete opened alligator mouth by the simple moving averages was formed in the meanwhile the price action was in the correction mode. After correction rally, the price action re-tested the support of 100 simple moving average and started a powerful bullish rally. At this time price action is trying to break out the powerful resistance of 10 cents. That is the key level resistance for the price action of XLM. During the correction rally, we can also see that the 25 simple moving average crossed down the 50 SMA and now it is up again.

 Click here to create free account on tradingview to watch and play the chart on realtime

Here I would like to take you on the Aave token chart. When back in November 2019 the Lend token had complete formation of open alligator mouth by the simple moving averages on the daily chart. The price action started a correction rally the same as like we have seen on the XLM chart. And used the 100 simple moving average as support and started bullish divergence and after breaking out the key-level resistance of 0.00000268 btc the price action rallied more than 2100%. So we can expect once the Lumens will be able to break out the key level resistance of $0.10. Then it can produce big gains the same as like the Aave token.

A big bullish BAT pattern:

Now at the end of this article, I would like to recall a very big bullish BAT pattern that I have been sharing with you since last year. And that is the price action of XLM has formed a very big bullish BAT move. This is a kind of reparative move like the Stellar formed a BAT pattern back in 2017. When it started the bullish rally for more than 4000% gains. But that BAT pattern was formed on the weekly chart. This time the price action has formed a big BAT on the monthly chart.

Click here to visit this old article on tradingview

So we can expect more powerful move than the previous one. However, realistically as per Fibonacci sequence of bullish BAT the targets can be as below:

Potential reversal or buying zone: 0.110 to 0.059 

Fibonacci projection or sell zone: 0.23 to 0.41 

A big bullish Butterfly:

If we watch the Stellar with Bitcoin pair then it has formed a very big bullish Butterfly pattern on the two-week chart.

Click here to visit this old article on tradingview

 And the targets as per Fibonacci sequence of Butterfly can be as below:

Potential reversal or buying zone: 0.00001369 to 0.00000380 btc 

Fibonacci projection or sell zone: 0.00002141 to 0.00003986 btc

Conclusion:

Stellar has a good history to produce powerful bullish rallies based on the harmonic moves. Therefore we can expect that this time it will repeat the history again. However, the charts I have shared with you are long term. Therefore this move will need some patience.

Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.



Coin Marketplace

STEEM 0.15
TRX 0.02
JST 0.037
BTC 10329.63
ETH 326.57
USDT 1.00
SBD 0.95