• XLM price bounces higher for a 10% gain but is halted, again, against the Tenkan-Sen at $0.28
  • Hidden bearish divergence suggests downside pressure remains.
  • Traders who are long have a difficult road to convert XLM into a bull market.

XLM price recently experienced one of the most bearish events within the Ichimoku system: the Chikou Span crossing and closing below the Cloud. This resulted in some initial solid defense by buyers who have propelled XLM over 10% higher. However, buyers have yet to show any follow-through and risk a continuation move lower.

XLM price bounces and gives hope to longs but fail to capitalize on gains

XLM price is a mixed bag of emotions. First, an extremely bearish event occurred when the Chikou Span closed below the Cloud. Then, an incredibly supportive response by buyers,  the Chikou Span back was propelled back up and into the Cloud and generated a 10% gain. However, a further rise was halted against and the market has yet to see any conviction by buyers.

Traders will likely observe a swift sell-off towards the $0.18 level if sellers breach the weekly swing lows at $0.25. Supporting analysis that suggests a breach of the weekly low can be observe in the higher highs printed in the Composite Index  while XLM price printed lower highs – hidden bearish divergence. Hidden bearish divergence is a warning that the prior, broader, downtrend is likely to continue.

XLM/USDT Daily Ichimoku Chart

Invalidating the current bearish outlook requires buyers to overcome a series of obstacles. First, XLM price needs to build structural support by closing above Senkou Span B and the 38.2% Fibonacci retracement at $0.32. Second, the close ultimately needs to be above the Cloud with the Chikou Span above the candlesticks – this can only occur at $0.42 between today and October 3rd or at $0.35 by October 5th.


Like this article? Help us with some feedback by answering this survey:


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

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

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