$XLM DO I SELL OR KEEP? WILL IT FALL DRASTICALLY? ✍️📉
This is the 5th analysis I've done on XLM, and I did this same analysis on $SEI , and see if I was wrong on all of them 🔥.
But this image reflects the fear of many. They'll believe it's going to plummet, but if you look closely, there are several factors that indicate this won't be the case (obviously, knowing that I can't know the future, this is an analysis that tries to predict movements).
There are three points to demonstrate why this rally won't fall, or rather, fail.
1) A rise as vertical as XLM's since early July is almost always followed by a correction. This is how the market "balances" itself and eliminates weak speculators. A healthy correction strengthens the trend.
2) The price now has no way back: Very optimistic, but based on whether the trend continues. If underlying demand for XLM is strong (perhaps due to fundamentals such as developments in the project or general interest in the crypto market), it is likely that the new support (the "higher low") will hold and the price will not return to June levels (around $0.23).
3) Ideally, support could form around Fibonacci levels of the rally, or at previous resistance levels that now act as support (a role reversal). The chart is pointing you to a possible support area at $0.40 - $0.42 or even a little lower if the correction is deeper.
In conclusion
A price correction is expected in the next few hours. The problem will be determining how much it will drop, because if it passes critical price levels of 0.25 or 0.20, there will be a downward trend. Otherwise, IT LOOKS EXCELLENT AT THE MOMENT. ❤️🔥🙂↔️