XLMUSDT Short Idea - Struggling to Maintain Bullish Momentum
Updated
XLMUSDT has had a strong run up to ~$0.63, as have many other alts, but is now struggling to maintain that bullish momentum.
[4H] Looking at a fib retracement view of the bullish push, we can see that the price action has been oscillating between the 0.5 and 0.618 fib levels and has once again been rejected off the bottom of the 0.5 level.
[30m] This chart shows a lower timeframe snapshot of that price action rejection off the bottom of the 0.5 fib.
[30m] From a bearish push fib retracement view, we can see that there is confluence between the 0.5 bullish fib level and the 0.618 bearish fib retracement region. We can see this level holding well and a potential rejection back down towards another bearish move.
[4H] The target for this short idea is a combination of the supply order block level sitting around 0.26, and the -0.618 fib extension level of the bearish fib retracement fib. Stop placement is above the order block flip zone indicated by the yellow box. For lower timeframe traders, a tighter stop could be attempted if you watch the price action closely following a breakdown below the last point of support at 0.38.
[4H] Looking at a fib retracement view of the bullish push, we can see that the price action has been oscillating between the 0.5 and 0.618 fib levels and has once again been rejected off the bottom of the 0.5 level.
[30m] This chart shows a lower timeframe snapshot of that price action rejection off the bottom of the 0.5 fib.
[30m] From a bearish push fib retracement view, we can see that there is confluence between the 0.5 bullish fib level and the 0.618 bearish fib retracement region. We can see this level holding well and a potential rejection back down towards another bearish move.
[4H] The target for this short idea is a combination of the supply order block level sitting around 0.26, and the -0.618 fib extension level of the bearish fib retracement fib. Stop placement is above the order block flip zone indicated by the yellow box. For lower timeframe traders, a tighter stop could be attempted if you watch the price action closely following a breakdown below the last point of support at 0.38.
Trade closed: stop reached
Almost immediately after registering this short idea, there was a strong upward price movement that reached my indicated stop area. The price action is currently sitting in neutral territory, possibly pending BTC choosing a direction. I will continue to observe this pairing, as if the price fails to hold above the support/resistance flip zone (marked by the yellow order block area), then a short play will still be on the cards. I'm yet to see any evidence that the price action is a bullish continuation, but as always, time will tell.
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