Early May Update: Technicals
Stellar’s daily XLMBTC chart looks bleak – XLM is still stuck in a descending channel, after barreling through the support line of 2176 satoshis it formed back in February-March. It also pierced the support at 1769 satoshis, sitting just below it right now. Intermediate trend is bearish and it seems XLM is about to drop further since there are no clear support zones in this area it currently orbits in.
It is crucial we see a bounce from this area as this is a support zone XLM formed way back in January 2018. Drop below this would lead us in uncharted territory.
However, there are other interpretations as well, a potential falling wedge is forming on the weekly XLMBTC – a bullish trend reversal indicator. This setting is still not invalidated and should volume pick up, Stellar could rocket past that green horizontal channel.
However, the unraveling Tether saga might keep the whole market in a cramp for undetermined time period so XLM might enter a trendless, sideways hovering around this current zone.
One thing to bear in mind is the turbulent and erratic nature of bitcoin – a sudden thrust up or slide down is always on the cards which would invalidate this and all other analysis and predictions. In such cases, market is shaken up with most traders exiting altcoins and entering bitcoin positions, especially in the initial phases of bitcoin pumps. So it is always good idea to keep a close eye on bitcoin’s behaviour before opening a long or a short on any other coin in the market.
Should this happen, stop by again to check out our updated charts and thoughts.
Trading volumes are looking grimmy, especially if we consider that the reported volume is 30x larger than the “Real 10” volume (trading volume…