• XLM price coiling for an explosive move higher.
  • The three-week Ichimoku chart gives an apparent reason why XLM has had difficulty moving higher.
  • A successful move above resistance could see XLM outperform nearly the entire altcoin market.

XLM price has been in a rut over the past nine weeks. Most frustrating for bulls has been the inability for XLM to reach the $0.50 level. However, that is about to change.

XLM price is positioned for one of the most extensive breakouts in the altcoin market

XLM price has struggled. That struggle is seen on the three-week Ichimoku chart. For any XLM bull, trader or investor, the three-week Ichimoku chart can be summed up in one word: ugly. One look at that chart clearly explains why XLM has struggled to make any significant move higher. Consider the following three-week Ichimoku levels, the 2021 Volume Profile, and their respective price values:

  1. 2021 Volume Point Of Control: $0.40
  2. Three-week Kijun-Sen: $0.43
  3. Three-week Senkou Span B: $0.46
  4. Three-week Tenkan-Sen: $0.50

The positive development for XLM price is the threshold it needs to meet to confirm an Ideal Bullish Ichimoku Breakout is easier given how close the Tenkan-Sen, Kijun-Sen and Senkou Span B are to each other. A close at or above $0.50 would fulfill all requirements for a bullish entry. Aggressive traders may even look at a close above Senkou Span B but below the Tenkan-Sen at $0.46.

Utilizing Fibonacci expansions, implied profit target zones can be forecasted. After a confirmed bullish close, the first profit target zone is the 100% Fibonacci expansion at $0.97. Next is the 161.8% Fibonacci expansion at $1.45. A move to $1.45 would create a new all-time high for XLM price – something it hasn’t done in almost four years.

XLM/USD 3-week Ichimoku Chart

The bullish outlook could take some time to develop, even in an atmosphere where Bitcoin, Ethereum and other altcoins experience big moves to new highs. This has been the case for XLM price for most of 2020 and 2021. As a result, any close below the $0.25 level for XLM would likely end any further upside potential and cause many traders to abandon it permanently.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP