Lumen
Long

XLMUSD A Move Upto $0.115 Is Expected In Next Few Days

Hey, friends hope you are well and welcome the new update on Stellar.
The price action of Stellar has started the completion of handle and after this completion, the formation of Inverse Cup & Handle pattern will be completed. The XLM has also a strong price level resistance at $0.115. Therefore the rally can be up to this level.
XLM An inverse Cup & Handle formation at the support of wedge


On daily chart the price action of XLM was moving in a down channel. Recently the price action broke out the resistance of this channel. But the volume is very low. Therefore the price action is retesting the previous resistance as support. In the meanwhile, the priceline of Stellar has also crossed up exponential moving averages with the time period of 10 and 21. And EMA 10 is also crossing up the EMA 21. Now these EMAs and the bull cross between them can be helpful for the priceline to start the next rally to the up side.
snapshot

On the same daily chart it can be observed that previously the priceine of Lumens broke down the simple moving averages with the time period of 25, 50, 100 and 200. Now the price action has broken out the 25 SMA and moving with 200 SMA. The SMA 50 is also moving down to form a death cross with 200 simple moving average that can be coz of more sell off.
snapshot

On the long term weekly chart, the price action of Lumens is like to have a very nice bounce from the support of a rising wedge pattern. Here the support of 50 SMA can be seen exactly at the same level where the XLM has the support of wedge. The 25 simple moving average is moving up to form a bull cross with 100 SMA and this bull cross is the reason that the sell off is not getting increased due to upcoming death cross between 50 SMA and 200 simple moving average on daily chart. If we take a look at the MACD indicator then it has started turning bullish. The stochastic oscillator has also entered in oversold zone. Now if the stochastic will also give bull cross from here the price action can turn strong bullish. Then we can expect the rally in next few days upto the resistance of rising wedge. This resistance is at almost $0.115.
snapshot

Conclusion:
The price action has very good supports from daily to weeky chart. However the breakout from the channel on daily chart is not backed by the strong volume. Therefore the price action is re-testing the previous resistance as support. Incase of failure in re-testing the price action may re-enter in previous channel. However sofar I am expecting a rally upto $0.115 in next few days.



lumenlumensMoving AveragesParallel ChannelSTELLARstellarlumensWedgeXLMXLMUSDxlmusdlongxlmusdt

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