Sumplicity is shopisticated. That one quote that I really like and has a deeper meaning to all of psychological human can interpert. Let's move on right away as you all know it's time for my XLM Update.

Key Observations

  1. Price Action: The price is at 0.31433 (by this time of writing), showing a significant increase (+10.16%) from my update yesterday. This indicates strong bullish momentum.

  2. EMAs: The price has moved above the 7 EMA (0.30506) but is still below the 25 EMA (0.32684) and 99 EMA (0.34019). This suggests a potential short-term bullish trend, but the longer-term trend remains uncertain.

  3. Volume: The volume is moderate, indicating that the buying pressure is decent but not overwhelming.

  4. MACD: The MACD line is crossing above the signal line, suggesting a potential bullish crossover. The MACD histogram is also turning positive, indicating increasing bullish momentum.

  5. RSI: The RSI is at 55.12874, indicating increasing buying pressure but not yet in the overbought territory.

  6. STOCHRSI: The STOCHRSI is at 61.09488, suggesting bullish momentum but also indicating that the asset is approaching overbought conditions.

As you have kmown of you were following my update, I used those indicators above as my analysis tools. So, in case you missed out, cpnsider giving a read to my recent update. Also, consider giving me a Like, Share and Follow My Profile. That's a big help, thanks. Let's continue!

Analysis and Interpretation

  1. Bullish Momentum: The significant price increase and the bullish MACD crossover indicate strong bullish momentum in the short term.

  2. Potential Resistance: The price is approaching the 25 EMA (0.32684), which could act as a significant resistance level. A break above this level would confirm a stronger bullish trend.

  3. Short-Term vs. Long-Term: While the short-term trend appears bullish, the price is still below the 99 EMA, indicating that the long-term trend remains uncertain.

  4. Potential Pullback: The STOCHRSI approaching overbought conditions suggests that a pullback is possible in the short term.

Scenario Analysis and Trading Decisions

Bullish Scenario:

  1. Wave Count: The drop to 0.25231 could be the completion of a corrective wave, and the current upward move could be the start of an impulse wave.

  2. Fibonacci Levels:

    - Retracement Levels (for potential pullbacks):

    * Based on the recent swing from 0.25231 to 0.31433:

    • 23.6%: 0.2996

    • 38.2%: 0.2910

    • 50.0%: 0.2838

    • 61.8%: 0.2766

    - Extension Levels (for potential targets):

    * If we consider the move from 0.25231 to 0.31433 as a potential Wave 1, we can project Wave 3 targets:

    • 161.8%: 0.3541

    • 261.8%: 0.3926

    • 423.6%: 0.4560

  3. Trading Decisions:

    - Long Positions: Consider long positions with tight stop-loss orders below the recent low (0.25231) or the 7 EMA (0.30506).

    - Profit Targets: Use the Fibonacci extension levels as potential profit targets.

Bearish Scenario:

  1. Wave Count: The current upward move could be a corrective wave within a larger downtrend.

  2. Fibonacci Levels:

    - Retracement Levels (for potential resistance):

    * Based on the recent swing from 0.63661 to 0.25231:

    • 23.6%: 0.3421

    • 38.2%: 0.3907

    • 50.0%: 0.4445

    • 61.8%: 0.4983

    - Extension Levels (for potential targets):

    * We need to consider the larger corrective pattern to project Wave C targets.

  3. Trading Decisions:

    - Short Positions: Consider short positions if the price fails to break above the 25 EMA (0.32684) and the MACD and RSI turn bearish.

    - Stop-Loss: Place stop-loss orders above key resistance levels.

Well, as always, choose your position calmly, trade wisely and always stick to your trading plan. Investing is always be profitable as long as you can wait and be patience. Always wait for confirmation before entering any trade. Use multiple indicators and price action analysis to validate your trading decisions. Use proper risk management techniques, including stop-loss orders and position sizing and consider the overall market sentiment and news that could affect XLM.

Let me warp it up here, cosely observe the price action around the 25 EMA (0.32684) and pay attention to the volume during any potential breakout or breakdown.

So, wait no further and choose one this pair below and click trade. Let your money work for you.

Let me know if you have any questions or need further clarification in the comment below, I'll make sure to get back to you as soon as possible. Remember again, this is not financial advise and should not be considered into one. This is pure speculative and just assumption of what I feel is right based on the knowledge I know. Trading is risky so be cautions. As always, may you always be happy, healthy and wealthy. Happy trading ang huge profit for you. Cheer... 🍻

#BTCRebundsBack