Stellar XLM reached (temp) bottom?
XLM' was one of the strongest coins in 2018, until november it was holding it's levels while the rest of the market tumbled. But lately it has played catch up as well. Now it is starting to look like there is a chance the low is being set, at least a temp low.
There is divergence on the right and left. Volume profile is a bit bullish as well it seems. On the left we can see volume being low as well on the daily with the drop the past month. Normally when a bullish wedge breaks down, we see a sharp decline with high volume. The drop was there (but should have been bigger) and it was not a fast drop, also low volume.
The yellow on the left show low volume with a big drop and the right one shows double the volume with half the drop. Suggesting some(one) are accumulating. In combo with a potential wedge, there are several factors now in favor of the bulls. Cant say if we follow the blue line, meaning if we make another drop before going up. Obviously depends on what Bitcoin will do'.
That first red zone on the left is a level to break and the second one is that trend line. If we see a good rally coming days shooting back up above the trend line, than it will most prob be a confirmation of a big bear trap. Today's candle could also become a buy signal if we see it move higher. Today's volume candle is also reaching a decent level, but want to see it reach that green zone there. That would also be a good confirmation of this all.
Please don't forget to like if you appreciate this :)
Previous analysis:
There is divergence on the right and left. Volume profile is a bit bullish as well it seems. On the left we can see volume being low as well on the daily with the drop the past month. Normally when a bullish wedge breaks down, we see a sharp decline with high volume. The drop was there (but should have been bigger) and it was not a fast drop, also low volume.
The yellow on the left show low volume with a big drop and the right one shows double the volume with half the drop. Suggesting some(one) are accumulating. In combo with a potential wedge, there are several factors now in favor of the bulls. Cant say if we follow the blue line, meaning if we make another drop before going up. Obviously depends on what Bitcoin will do'.
That first red zone on the left is a level to break and the second one is that trend line. If we see a good rally coming days shooting back up above the trend line, than it will most prob be a confirmation of a big bear trap. Today's candle could also become a buy signal if we see it move higher. Today's volume candle is also reaching a decent level, but want to see it reach that green zone there. That would also be a good confirmation of this all.
Please don't forget to like if you appreciate this :)
Previous analysis:
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.