Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.

Zodiac sign [XLM], at press time, was consolidated as he witnessed a fierce clash between the buyers and sellers near the Point of Control (POC, red). The recent drawdowns have put a bearish pennant on XLM’s daily time frame.

Any close under the pennant could pave the way for a decline in the coming sessions. The bulls had to increase buying volumes to counteract the current bearish tendencies.

At the time of writing, XLM was trading at $0.11233, down 2.57% in the past 24 hours.

XLM Daily Chart

Source: TradingView, XLM/USD

This bearish pull of the $0.20 marked a three-month trendline resistance (white, dashed) on the daily chart. The alt lost more than 58% (from its April high), reaching its 19-month low on June 18.

This trendline resistance has hindered most of the recovery in recent months. Consequently, the recent outage in the up channel turned into a bearish pennant. As a result, XLM fell below the 20 EMA (red) showing a bearish edge.

If the bears continue to ramp up their pressure, they would try to break under the pennant. A close below this level could expose XLM to a downtrend towards the $0.1019 zone.

Should buyers experience renewed pressure, immediate trendline resistance could undermine buying efforts. Also, with the short term EMAs looking south, sellers have reiterated their lead in the current dynamics.


Source: TradingView, XLM/USD

The RSI has taken a bearish stance in recent days. Resistance at 42 levels has stalled short-term buying efforts on the chart.

In addition, the higher spikes of the OBV over the past week marked a bearish divergence with the price action. This reading fitted well with the ongoing bearish outlook.


Given the current bearish pennant lineup approaching the south-facing 20 EMA, XLM could see a potential decline. A break below the pattern could expose the alt to a 9% downside risk.

However, investors/traders need to consider broader market sentiment and developments in the chain to make a profitable move. This activity would be absolutely necessary to minimize the risk of bearish nullifications.

This post Stellar’s [XLM] aggressive traders can profit from the break of this pattern

was published first on https://ambcrypto.com/stellars-xlm-aggressive-traders-can-profitably-leverage-this-patterns-break/


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