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Monday, August 17, 2020

XLMUSD landscape

XLMUSD landscape

XLM / Dollar BITFINEX:XLMUSD

Crypto is clearly in a disbelief phase. This is the first true multi-month bull market since 2017 with significant multi-year resistance breakthroughs across the board. There are tricks and traps all over the place, and XLM is no exception. Looking at the indicators, we have very obvious bearish divergences. Divergences of this magnitude need to be given proper respect, but in many instances morph and fail during parabolic bull runs. Looking at the chart patterns, we have a fractal of inverse head and shoulders patterns with equal price targets near $0.15. I am not suggesting an immediate entry, but just giving a map of the landscape. Big resistances in the $0.2 range, which will be a nice zone to play for active traders. Ultimately, I am technically biased long because we are clearly above multi-year resistance, above the neckline, and the 200 DMA is trending up, but more thought needs to be put into the entry point. I am cautious because all markets are way overbought, and crypto will not be immune to a stock market correction. Wait for a clear sign. Either a clean break above the small IH&S neckline, or a drop to support.



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