- XLM price recovered all of the losses it experienced last week.
- Buyers bought all dips and continue to support XLM against any sell-off.
- Trapped short-sellers could become major catalysts to any upcoming rally.
XLM price continues to consolidate, but it may be nearing a fantastic bullish breakout zone ahead. The combination of a conversion to a bull market and the anticipated break of an inverse head-and-shoulders pattern has buyers waiting for confirmation before entering any long trades.
XLM price positioned for monster bullish bullish breakout if it can hit $0.41
XLM price presents two trade ideas for the long and short sides of the market. The first trade idea is a hypothetical buy stop at $0.41, a stop loss at $0.37 and a profit target at $0.55. This trade idea would accomplish two primary goals. First, it would confirm the conversion to a bull market by entering above the first pull-back zone. Second, it would deny the bear flag as a bearish continuation pattern, creating a sort of bear trap.
XLM/USD $0.01/3-box Reversal Point and Figure Chart
The long trade idea would be invalidated if the XLM were to drop below $0.31.
The short side of the trade is a little tricker and requires more active management of the trade. If the current column of Os dropped to a double bottom at $0.32, XLM price might find support at a high volume node in the volume profile and the dominant bull market angle (blue diagonal line). Therefore, developing a triple-bottom or a split triple-bottom at $0.32 would be necessary for a hypothetical short entry at $0.31. The short entry idea is a sell stop at $0.31, a stop loss at $0.34 and a profit target at $0.20 – again, only if there is a triple-bottom or split-triple bottom.
XLM/USD $0.01/3-box Reversal Point and Figure Chart
However, the short idea is the least likely to occur. The Vertical Profit Target Method indicates that the profit zone is at $0.15 – but that has a very low probability of occurring. It is more likely that the lows on any sell-off would be limited to the Volume Point of Control for 2021 and the prior support zone at the $0.20 value area. The theoretical short idea will be invalidated if the long trade above is activated.
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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
![Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/Ripple_Coin_31_02_XtraSmall.jpg)
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
![Bitcoin price falls amidst German government transfers, miners activity](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bit-coin-symbol-flag-3d-illustration-59931110_XtraSmall.jpg)
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
![Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/Bitcoin_2_XtraSmall.jpg)
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
![Three reasons why altcoins could shake off losses this week](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
![Bitcoin: BTC price correction could end in July, according to seasonal data](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.