So, XLM coin sellers reached a critical point, which is the main obstacle on the way to USD 0.05. We will remind you of some facts and expectations from the previous analysis. The previous weekly candle did not close in favor of buyers. It is understandable by its structure and low volumes:
After an aggressive weekly candle of sellers, buyers were able only to stop the price at the bottom trend line of the triangle, in which the price is traded from February 2019. Therefore, the new week did not start with growth, because buyers did not create the preconditions for it. At the moment, sellers managed to break the bottom trend line and the price zone of USD 0.095-0.097. And now they switched to the waiting phase, allowing buyers to show what they are capable of with these price marks.
So far, buyers have managed to test a price zone of USD 0.095-0.097 along with a trend line. Now the chances of buyers for a new wave of growth are much smaller. At least, until the price is lower the purple price zone.
According to the wave analysis, the scenario with the triangle in which 5 waves will be formed – can not work. Because after wave (C) a new wave of fall started to form, and the growth from February 2019, which consists of 3 waves, was a correction:
XLM buyers can adjust the previous wave of a fall by 23.6%. The price did not go beyond the global falling channel, respectively, there is a high probability of a fall continuation to USD 0.05. However, on the path to this target, sellers will face a problem at a price of USD 0.075:
The current weekly candle, though closed with a pin, however, shows that sellers have enough strength to continue to fall:
We will consider the alternative scenario when the buyers are fixed over the trend lines and the price zone of USD 0.095-0.097. However, look at how aggressively sellers protect themselves:
There are enormous volumes within the trend line test, in which sellers sharply lower the price down. On that basis, in order to talk about an alternative scenario, buyers, to begin with, need to start consolidation and reduce the confidence of sellers. Otherwise, the next week with a high probability – the fall will continue. Will XLM sellers manage to test USD 0.075 during the next week? We will analyze next Saturday. Have a nice weekend! 🙂