✴️ XLMUSDT | Stellar Growth or New Low (Name Your Altcoin #9 ✅) We are getting close to the last altcoins from our list and we are going to be looking at the chart from a different perspective for your entertainment.
Will Stellar (XLMUSDT) start growing or will it continue dropping and hit a new low?
The answer is truly for the market to decide... But we can use the tools we have available here on TradingView to speculate as to what is most likely to happen next.
The classic signals you are already familiar with and so we will have a look at Elliot Wave Theory simplified.
From March 2020 to May 2021 we can easily spot a 5 up-wave pattern and thus we have a good starting point.
You can confirm the count to be correct by using the volume indicator. The third wave always produces the highest volume and this can be clearly seen here.
When 5 waves are in, we can look for the next step and what follows is a correction.
Based on Elliot Theory there are two main types of corrections, zig-zags, classic 5-3-5 and flats, 3-3-5.
Here we have a flat and we can easily spot the 5 down-wave pattern of the c wave, and thus we know this move also be to over.
Now, waves can be extended, corrections can extend and here we will call for other tools to assist our EW theory, tools that were not available when Ralph was playing his game.
But first, the use of EW Theory is not to predict the future but instead to help you prepare for future potential scenarios.
Wave counting is better used in retrospect and your count can or needs to be adjusted as the market evolves.
After the correction is over we expect a new impulse in the form of a 5 up-wave to show up.
Additionally, we have MA200 trending down strong, when this happens we tend to see prices, XLMUSDT, go up.
Basically the action will gravitate towards this indicator.
At the same time we have a hidden bullish divergence with the RSI, let me explain...
XLMUSDT hit a lower low in Dec. 2022 compared to March 2020, while the RSI hit its lowest point Dec. '22, even lower than March 2020 giving us a strong bullish signal.
These are just signals of course and do not change how we would approach a pair to trade.
If prices drop below the Dec. low, that would be our stop-loss... Any trading above this level and we wait, patiently, for the next bullish wave.
For how long you want to wait before selling or how much you will sell at each target, that's a whole different game... But once we get the bottom, once we are in the green, it is easy play.
Name your altcoin #9.
Namaste.
