Hello again Fellas, okay let's continue the update about Stellar Lumens we have since yesterday. Sorry, it was a bit late for me to update it, but here I am. So, the daily timeframe for XLM hasn't shown significant changes since yesterday, confirming the continuation of the previously observed trends. Let's analyze what we see and how it aligns with my previous update.
Key Observations (Daily Timeframe - Continued)
Price Action: The price remains in a downtrend, currently at 0.29017, a slight decrease from yesterday. This reinforces the bearish momentum.
EMAs: The price is still below all three EMAs (7, 25, and 99), and the EMAs maintain their downward slope. This indicates a consistent downtrend.
Volume: The volume remains moderate, suggesting steady selling pressure.
MACD: The MACD is still negative (-0.00227), and the MACD line is below the signal line, confirming the bearish trend.
RSI: The RSI values (26.94297 and 33.08390) are still low, indicating oversold conditions.
STOCHRSI: The STOCHRSI is at 4.12738, remaining in the oversold territory.
Analysis and Continuation from Previous Update
Bearish Trend Confirmation: The continued price action and indicator readings confirm the ongoing bearish trend. This aligns with the analysis of a potential Wave C within a larger corrective pattern in my previous update.
Oversold Conditions: The oversold RSI and STOCHRSI suggest that a short-term bounce is still possible, but the overall trend remains bearish.
Potential Support Levels: The 100% Retracement from ATH around 0.255 and The Fibonacci Retracement levels I wrote yesterday (0.1878 if 0.255 won't hold) remain relevant as potential support levels. The current price is hovering around the 0.2903 level, which could act as a temporary support.
Trading Decisions (Continued)
Bearish Scenario Remains Dominant: The bearish scenario remains the most likely outcome based on the current price action and indicator readings.
Short Positions: Continue to consider short positions if the price breaks below the current support level (0.2903) or other key support levels.
Potential Profit Targets: Use the Fibonacci retracement levels as potential profit targets for short positions.
Stop-Loss: Place stop-loss orders above recent highs or key resistance levels to manage risk.
Short-Term Bounce Potential: While the overall trend is bearish, be aware of the potential for a short-term bounce due to oversold conditions. If entering a counter-trend long position, use tight stop-loss orders and take profits quickly.
Important Considerations
Confirmation: Always wait for confirmation before entering any trade. Use multiple indicators and price action analysis to validate your trading decisions.
Risk Management: Always use proper risk management techniques, including stop-loss orders and position sizing.
Market Sentiment: Continue to monitor the overall market sentiment and news that could affect XLM.
I always told you those points in The Important Consideration because Trading is really risky, you can consoder it as gambling and/or as investment. Back to last, overall, in summary, the daily timeframe continues to show a consistent bearish trend with oversold conditions. The bearish scenario remains dominant, but be aware of the potential for a short-term bounce.
Now, pick one of this pair and start trading, waste no time and let your money work for you!
Well, that's the update for today, nothing is really new actually, considering that what the price showed my eyes. But as always, remember that this is not financial advise and should not be taken into one. Always do your own research, choose your position calmly and trade wisely. Stick to your trading plan and be patience.
Last but not least, may you have huge profit from your trade and may you always be happy, healthy and wealthy. Happy Trading, cheers... 🍻
