XLM Forming Very Strong Long Term Structure
Hi, friends hope you are well and welcome to the new update on Stellar coin.
On 13 Dec, I shared an idea and showed how the Stellar can drop and complete the final leg of a bullish BAT pattern. Completion of this pattern was dependent on breaking down the 25 SMA on the daily chart. Finally, the price action broke down the 25 SMA and went very close to the potential reversal zone and reversed without hitting the PRZ level and recovered more than 172%.
Breaking out the channel:
On the daily chart, the price action of XLM is moving within a channel and at the moment it is breaking out the resistance of the channel. The priceline of XLM is also having good support of 25, 50, 100 and, 200 simple moving averages.
Different support and resistance levels:
On the long-term weekly char, different long term support and resistance levels can be seen easily. We can see that after breaking out the $0.12 resistance it is also breaking out the next resistance of $0.20. Before this, it was strongly rejected by the $0.20 level. Now it is moving to the next resistance at $0.30. Here on the weekly chart, the price action of Stellar also has good supports of exponential moving averages with the time period of 10 and 21.
A big strong bullish market structure:
On the long-term weekly chart, it can be easily seen that after breaking out the rejection trendline the price action of XLM has formed an up-trend line and now this uptrend line has turned to a parabolic move. Before every rally, the price action of XLM is using the exponential moving averages 10 and 21 as support.
Conclusion:
If we will have daily closing above $0.20 then soon it can breakout the $0.30 resistance as well. Because between $0.20 to $0.30 levels there is not major resistance in the long term.
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