Hello traders! With Bitcoin rising from %3780 up to $9460 in just 48 days, the cryptocurrency market continues to gain more attention around the globe. Today we’ll analyze Stellar Lumens against the USDT, which is a TOP 11 coin by the total cryptocurrency market capitalization.
Let’s observe a short term price action, specifically a 1-hour timeframe. Clearly price is trending upwards while the uptrend trendline is being respected. On the other hand, downtrend trendlines are being consistently broken. On May 4, XLM/USDT has reached and rejected the 200 Exponential Moving Average. Price was desperate to break below, although bull did win that battle, and Stellar managed to stay above the EMA.
We can see there is a massive support area formed between $0.0663 and $0.0678. Potentially, Stellar might attempt to re-test this demand area, but at the same time, it can continue moving up at any time. We have applied the Fibonacci indicator to the corrective wave down after the last impulsive growth. It was that 127.2% and 227.2% Fibonacci retracement levels have been broken and 127.2% has become the support. With this in mind, the upside target could be the next Fibs, which is 327.2% at $0.0800. Not only this is a technical, but also a strong psychological resistance.
If/when XLM will break above this level, it might be a very strong confirmation of a long term bullish trend. Eventually, this will result in x5, x10, and even higher price increase.
Bias: Strongly bullish while above 0.0663
Potential Support Zone: 0.068 – 0.070
Potential Targets: 0.080
Have a profitable trading!