Jonathan Morgan
Independent Analyst
- XLM price consolidation provides an early warning that a breakout is about to happen.
- Two hypothetical trade ideas were identified – one long and one short.
- Traders look to capitalize on any clear move.
XLM price remains one of the most underwhelming major cryptocurrencies and a laggard with respect to its most recent price action. XLM is currently positioned for ideal trade setups on the long and short sides of the market. The two trade ideas identified in this article are based on two different sized Point and Figure charts.
XLM price has profit potential for bulls and bears alike
XLM price action shows there is a hypothetical trade idea for the short side of the market. The $0.025/3-box Point and Figure chart shows a constriction of price action with a possible bearish continuation pattern on the 3-box reversal. The short idea is an entry at $0.3250, a stop loss at $0.4000, and a projected profit target at $0.0700. This is the least likely setup, given the bullish nature of the aggregate cryptocurrency market.
XLM/USD $0.025/3-box Reversal Point and Figure Chart
On the long side of the trade, XLM has a very ideal bullish setup. The most recent X-column broke the dominant bear market angle and converted the $0.01/3-box Point and Figure chart to a bull market. The current O-column is the first pullback from that bullish breach. The hypothetical trade for the long side of the market is the 3-box reversal of Xs. Currently, that entry would occur at $0.4000 with a stop loss at $0.3600 and a projected profit target at $0.57.
XLM/USD $0.01/3-box Reversal Point and Figure Chart
The long entry idea has the highest positive expectancy rate given the present trend and overall sentiment. Additionally, the $057 target may be entirely too conservative given that XLM price has been a significant laggard and has yet to create a new all-time high.
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
Editors’ Picks
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.
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.
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.
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.
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.
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.