Hello traders! The cryptocurrency market is getting more and more interesting considering the ongoing financial crisis. Gold and Bitcoin becoming assets of the safe-haven and multiple top altcoins are growing rapidly. Today we’ll observe the Stellar Coin (XLM) which is currently ranked #14 by the total market capitalization.
Technically, Stellar is becoming very strong, especially if we look at the 3-day chart. During one year, the price has formed extremely strong support near 555 Satoshis, and on July 14 price finally broke above the key resistance area near 1000 satoshis, which is a very strong psychological level.
Perhaps we are witnessing the very beginning of a long term uptrend, considering the fact that price bounced off the 50 Exponential Moving Average. Now, higher highs and higher lows are being printed and the price is near the 1000 satoshis support area. This could be an opportunity of a lifetime with a reasonable risk for long term investors.
In regards to the upside target, there are two major resistance and target levels. First is at 1600 satoshis, which is confirmed by two Fibs, 23.6% and 361.8% Fibs applied to the corrective wave after the 50 EMA breakout.
If 1600 resistance will be taken out, with a daily and weekly close above, XLM/BTC next stop is expected to be near 3000 satoshis, which is another psychological level confirmed by 61.8% Fibonacci retracement level.
On the downside, weekly break and close below 750 satoshis, will immediately invalidate bullish scenario and price might continue to consolidate or even produce a new all-time low.
Bias: Strongly bullish while above 750 satoshis
Potential Support Zone: 900 – 1000 satoshis
Potential Targets: 1596, 3046
Have a profitable trading!