As you already knew, trading is risky but also profitable as of investing will always gives us a consistent profit. Sticking to our trading plan and strategy is crucial and patience is the key to achieve such a beautiful moment. Like wise, here we are, in our cryptocurrency journey, there's no such thing as certain, but we can be certain of what we were planning to achieve.

So, let's continue our analysis for XLM now, here with my 5th update of XLM Elliott Wave Theory. In case you missed out, consider re-visit my old article about this analysis so you will know the accuracy of this post. Also, consider giving me a Lile, Share and Follow, that's a big help for me.

Okay, no more waste words, as always, I use Daily Timeframe for my analysis, so, let's move on!

Key Observations

  1. Price Action: The price is at 0.34689 (by the time of this writing), showing a significant increase (+11.11%) from the previous analysis. This confirms the strong bullish momentum we observed earlier.

  2. EMAs: The price has broken above the 25 EMA (0.33098) and is now approaching the 99 EMA (0.34104). This is a significant development, indicating a potential shift in the medium-term trend.

  3. Volume: The volume is relatively high, suggesting strong buying pressure.

  4. MACD: The MACD line is above the signal line, and the MACD histogram is positive, confirming bullish momentum.

  5. RSI: The RSI is at 68.70614, approaching overbought conditions.

  6. STOCHRSI: The STOCHRSI is at 92.43562, indicating overbought conditions.

Analysis and Interpretation

  1. Strong Bullish Momentum: The price action, volume, and indicators confirm strong bullish momentum.

  2. Breakout Above 25 EMA: The break above the 25 EMA is a significant bullish signal.

  3. Approaching 99 EMA: The price is now approaching the 99 EMA (0.34104), which could act as a strong resistance level.

  4. Overbought Conditions: The RSI and STOCHRSI indicate overbought conditions, suggesting that a pullback or consolidation 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 0.34689:

    - 23.6%: 0.3248

    - 38.2%: 0.3103

    - 50.0%: 0.2996

    - 61.8%: 0.2889

    Extension Levels (for potential targets):

    If we consider the move from 0.25231 to 0.34689 as a potential Wave 1 (we still use this assumption wave as of it's not clear enough), we can project Wave 3 targets:

    - 161.8%: 0.3995

    - 261.8%: 0.4502

    - 423.6%: 0.5367

  3. Trading Decisions:

    - Long Positions: You can open a long positions with tight stop-loss orders below the recent low (0.25231) or the 25 EMA (0.33098).

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

Bearish Scenario

  1. Wave Count: The current upward move could be a corrective wave within a larger downtrend (Extended Wave C as we talked about in all of my old article).

  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 target (around 0.17 to 0.18 see my recent article).

  3. Trading Decisions:

    - Short Positions: If you want, you can also consider a short positions if the price fails to break above the 99 EMA (0.34104) and the MACD and RSI turn bearish.

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

Always wait for confirmation before entering any trade. Use multiple indicators and price action analysis to validate your trading decisions and always use proper risk management techniques, including stop-loss orders and position sizing.

Consider the overall market sentiment and news that could affect XLM as we're moving rorward, always monitor the Price Action. Closely observe the price action around the 99 EMA (0.34104). Pay attention to the volume during any potential breakout or breakdown.

If you already sure about all of it, plan your trade and pick one of the pair below and start trading. Waste no more time and let your money work for you!

I'm gonna end today's post here. Last but not least, may you always be happy, healthy and wealthy. As always, remember that this is not financial advise and should not be considered into one. Always do your own research. Let me know if you have any questions or need further clarification on the comment bellow, I'll make sure to get back to you soon. Happy Trading and Huge Profit for you. Cheers... 🍻

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