Hey friends, hope you are well and welcome to the new update on Stellar coin.
Another bounce from the support of wedge:
As in my previous post, we have seen that on the weekly chart, the priceline of XLM coin was getting bounced from the support of rising wedge and had a strong resistance of 100 simple moving average.
Now the price action of Lumens is again moving up because after hitting the 100 SMA resistance it went on the support again. This time the 100 simple moving average is moving down and entered in candlesticks, now we can expect that soon 100 SMS will completely cross down the price line to provide firm support. The 50 SMA is still working as strong support underneath the support level of the wedge.
Now is the priceline will move up to the resistance then it can hit $0.135 to $0.14 easily. But if the Stellar coin will break out this level then an imminent move can be observed up to $0.20 (as per the measurement of space between the tail of wedge to the support and placing it at the recent resistance level).
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The indicators and oscillators:
If we take a look at the indicators and oscillators then on the long-term weekly chart the RSI is still in uptrend and MACD has turned weak bearish from strong bearish soon it can turn bullish as well. Now we can wait for momentum to turn bullish or atleast weak bearish from strong bearish for further movement to the upside.
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The price action found firm support above $0.08:
On the daily chart, it can be observed that the price action of XLM has found firm support above $0.08 having good support of 50 SMA as well. At the moment the price action is trying to breakout the 200 SMA. If the price action will breakout 200 simple moving average and 50 SMA will move up and form a golden cross with 200 SMA then a strong bullish divergence can be triggered because this golden cross can invite many professional traders to jump into Stellar coin.
Ichimoku cloud turned bullish:
On the daily chart, the Ichimoku cloud has turned bullish, but the candlesticks did not cross up the bearish cloud so far. In fact, the candlesticks are struggling to breakout the bearish cloud, but the lagging span and conversion and baselines of Ichimoku cloud indicator have given bullish signals therefore we can expect a breakout from the cloud soon.
Conclusion:
Even though the indicators are turning bullish and the XLM coin has strong support on the weekly chart but I will be using the support of wedge or atleast the 50 SMA on the weekly chart as stop-loss because if these supports will be broken down then a strong bearish move can be seen.
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