• 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


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

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