XLM has broken its previous low, raising the question: where is the next major support zone? To determine this, we will focus on fibonacci, moving averages, and order blocks to find a high-probability bounce area for a potential long position.
🔍 Fibonacci Retracement – Locating the Next Support Level
Using the Fibonacci retracement tool from the low at $0.0757 to the high at $0.6374:
Since the 0.786 Fib level is a key retracement point, we need further confluence factors to confirm its strength as a potential support zone.
🔗 Confluence Factors Strengthening the Support Zone ($0.1959 – $0.17179)
1:1 Trend-Based Fibonacci Extension
Wave A-B Fibonacci Extension
Daily Support Level at $0.1962
21 EMA & 21 SMA for Moving Average Support
Order Block Between $0.2208 – $0.1964
Key Takeaway:
A high-probability support zone is now identified between $0.1959 and $0.17179, with multiple confluences suggesting a strong potential bounce.
Trade Plan – Scaling Into a Long Position
Given the strong confluence at the support zone, the best approach is scaling into a long trade.
DCA Entry Strategy:
Stop Loss:
Take Profit Levels for Optimal R:R:
R:R Approximation:
High-Probability Support Zone Identified
Alternative bullish scenario: A reclaim of lost key low at $2526 with rising volume could signal a long opportunity, only on confirmation.
💬 Will XLM bounce from this key support? Let me know your thoughts in the comments! 🚀🔥
🔍 Fibonacci Retracement – Locating the Next Support Level
Using the Fibonacci retracement tool from the low at $0.0757 to the high at $0.6374:
- 0.618 Fib Retracement → $0.2903 (Already Lost) ❌ Current Price: $0.248
- Next Major Fib Level – 0.786 Retracement at $0.1959
Since the 0.786 Fib level is a key retracement point, we need further confluence factors to confirm its strength as a potential support zone.
🔗 Confluence Factors Strengthening the Support Zone ($0.1959 – $0.17179)
1:1 Trend-Based Fibonacci Extension
- High: $0.6374
- A: $0.3179
- B: $0.515
- 1:1 extension aligns at $0.1902 → Strong confirmation near 0.786 Fib retracement ✅
Wave A-B Fibonacci Extension
- 1.618 Fib extension from wave A to B is at $0.1875 → Aligns with the 1:1 trend-based extension ✅
Daily Support Level at $0.1962
- Sits almost exactly at the 0.786 retracement ($0.1959) ✅
21 EMA & 21 SMA for Moving Average Support
- 21 EMA at $0.20338
- 21 SMA at $0.17187
Order Block Between $0.2208 – $0.1964
- Demand area aligns with the major support zone ✅
Key Takeaway:
A high-probability support zone is now identified between $0.1959 and $0.17179, with multiple confluences suggesting a strong potential bounce.
Trade Plan – Scaling Into a Long Position
Given the strong confluence at the support zone, the best approach is scaling into a long trade.
DCA Entry Strategy:
- Start scaling in at $0.22, as an order block exists between $0.2208 – $0.1964
- Main focus remains on the support zone ($0.1959 – $0.17179)
Stop Loss:
- Below the 21 SMA ($0.17187) for invalidation
Take Profit Levels for Optimal R:R:
- First TP at $0.25 → Resistance area
- Next TP at $0.30 → Strong psychological & resistance level
R:R Approximation:
- 2:1 R:R for first TP ($0.25)
- 3:1+ R:R if targeting $0.30
High-Probability Support Zone Identified
- ✔ Multiple confluences confirm a strong support zone at $0.1959 – $0.17179
- ✔ Scaling into a long from $0.22 to $0.17179, with stop loss below the 21 SMA ($0.17187)
- ✔ Take profit levels set at $0.25 & $0.30 for a solid R:R trade
Alternative bullish scenario: A reclaim of lost key low at $2526 with rising volume could signal a long opportunity, only on confirmation.
💬 Will XLM bounce from this key support? Let me know your thoughts in the comments! 🚀🔥
🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical 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.
🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical 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.