Hello Binancers, we're already on the 7th update of our analysis about XLM Price Movement using Elliott Wave Theory. It's been a week and I would like to thank you so much for reading my post and giving me support. It's really appreciated, thanks.

Okay, let's move on without further ado, the updated XLM/USDT using the daily timeframe chart.

Key Observations

  1. Price Action: The price is at 0.29336 (by the time of writing this), showing a slight increase (+4.08%) from the previous analysis. This indicates a minor bullish recovery.

  2. EMAs: The price remains below the 7 EMA (0.30226), 21 EMA (0.31724), and 99 EMA (0.33813). This confirms the continuation of the bearish trend.

  3. Volume: The volume is moderate, suggesting that the buying pressure is not very strong.

  4. MACD: The MACD line is still below the signal line, but the MACD histogram is turning slightly positive, indicating a potential decrease in bearish momentum.

  5. RSI: The RSI is at 42.38231, indicating neutral to slightly bearish momentum.

  6. STOCHRSI: The STOCHRSI is at 42.54178, suggesting neutral momentum.

Analysis and Interpretation

  1. Minor Bullish Recovery: The slight price increase indicates a minor bullish recovery, but the overall trend remains bearish.

  2. Continued Bearish Trend: The price remains below the key EMAs, confirming the continuation of the bearish trend.

  3. Weak Buying Pressure: The moderate volume suggests that the buying pressure is not very strong, and the recovery may be temporary.

  4. Potential Decrease in Bearish Momentum: The MACD histogram turning slightly positive indicates a potential decrease in bearish momentum, but a bullish crossover is not yet confirmed.

Scenario Analysis and Trading Decisions

Bullish Scenario

As of right now, the Bullish Scenario we talked about is not very likely, considering the moderate volume and bearish momentum. However, I still fix on staying in this scenario until it's no longer valid. The drop to 0.25231 could be the completion of a corrective wave, The C Legs as we talked about before, and the current upward move could be a temporary pullback before a continuation of the bullish trend. I can assume it's the one two setup in our journey to the next upcoming impulsive wave 5, which is formed by 5 Waves as well.

  1. Fibonacci Levels:

    Retracement Levels (for potential support):

    Based on the recent swing from 0.25231 to 0.34689:

    - 50.0%: 0.2996

    - 61.8%: 0.2889

    - 78.6%: 0.2735

  2. Extension Levels (for potential targets):

    If we identify The Wave 1 of The First Wave in The 5th Wave around the latest pullback high 0.34688, we can set our target for another Wave 1 Count at The Extension:

    - 38.2%: 0.3907

    - 50.0%: 0.4445

    - 61.8%: 0.4983

  3. Trading Decisions:

    - I still hold my long positions; you can consider entering it as well only if there is a strong bullish reversal with significant volume and a break above key resistance levels.

  4. Place stop-loss orders below key support levels.

Bearish Scenario

Well, this one is more likely as of what the indicators are. The recent upward move could be a corrective wave within a larger downtrend, as we talked about, The Extended Wave C and the price is likely to decline further.

  1. 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

  2. Extension Levels (for potential targets):

    To project The Extended Wave C targets, it will be below the last swing low, might go as low as around 0.18.

  3. Trading Decisions:

    - If you want, consider short positions with stop-loss orders above key resistance levels.

    - Profit Targets: Use Fibonacci extension levels or previous support levels as potential profit targets.

Important Considerations

  1. Confirmation: Wait for confirmation before entering any trade. Use multiple indicators and price action analysis to validate your trading decisions.

  2. Risk Management: Always use proper risk management techniques, including stop-loss orders and position sizing.

  3. Market Sentiment: Consider the overall market sentiment and news that could affect XLM.

  4. Regulations: Keep an eye on any updates to cryptocurrency regulations in your country, as this could impact XLM's price.

  5. Adoption: Look for news about partnerships or adoption of XLM, as this could be a positive fundamental factor.

Well, I'm going to end today's update here. Let me know if you have any questions or need further clarification in the comments below. You can consider following my profile, liking, and sharing my article as that will be a big help for me.

As always, please remember that this is not financial advice and should not be considered as such. Always do your own research. Last but not least, always choose your position calmly, trade wisely, and stick to your trading plan. Trading is risky but investing will always be profitable; patience is the key. May you always be happy, healthy, and wealthy. Happy Trading and Huge Profit for you. Cheers... ๐Ÿป

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