Today we will talk about XLM, also known as STR. We will analyze this coin on the basis of Poloniex Exchange history, as the history of XLM coin on this exchange is the most complete.
Briefly about global. Like the whole cryptomarket, from the beginning of 2018, the price of XLM has started to fall and during the entire time it moves in the falling channel:
On a weekly chart, we see that buyers are trying to fix themselves above the intermediate price zone of USD 0.12-0.13. However, the global critical points for this coin are in the range of USD 0.18-0.21. Firstly, the upper trend line of the falling channel passes this price zone now, and if buyers can fix above this line, then with the falling trend, which lasts almost a year and a half is over.
Secondly, in this price zone, a large volume has accumulated. According to the chart, buyers have been keeping this price zone for almost 9 months. After a sharp breakthrough in the price zone of USD 0.18-0.21, a large number of buyers remained in an unpleasant financial situation. This part of investors at the earliest opportunity to sell this coin at a price of USD 0.18-0.21 will use it. Therefore, this price zone will be a good indicator of the strength of buyers and a signal for action.
On a daily timeframe, we see that now there is an active fight for the price zone of USD 0.128-0.13. Since 14 – 17 May, buyers began their attack, strengthen it with large volumes, but so far they have not been able to fix above this price zone:
According to the wave analysis, the current growth, which began in February 2019, corrected the wave of the fall (Y) by 23.6%:
On a daily timeframe, we see that the wave of growth from 11 February was corrected by 78.6%:
In order for us to understand whether the current growth is a correction after the fall or is it a new wave of global growth, one needs to see if buyers can break through and fix over the price of USD 0.19:
If sellers can keep the price on this point, it means that the fall of the trend has not yet ended, but only a correction has taken place. Otherwise, after fixing over the price of USD 0.19, buyers will have large and global prospects for growth over the long term.
Meanwhile, we are following the triangle, which is noted for a 4-hour timeframe, which in our opinion is more likely to break through up with targets of USD 0.158 and USD 0.184.
Have a nice weekend! We will meet tomorrow at the weekly BTC and ETH analysis!
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market.
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