XLM - Will XLM Find Strength or Stumble?
XLM has been in a downtrend for the past 10 days after rejecting from the 0.618 Fibonacci retracement resistance. The price action shows lower highs and lower lows with no significant volume, signaling a potential continuation of the trend. Let’s identify the key support and resistance zones and possible trade setups.
Support Zone
A strong support zone lies between $0.3725 and $0.3695 based on multiple confluences:
Resistance Zone
Short Trade Setup
Long Trade Setup (on confirmation)
Support Zone
A strong support zone lies between $0.3725 and $0.3695 based on multiple confluences:
- Monthly Level: At $0.3725
- Anchored VWAP: From the very low, the VWAP aligns with the monthly level
- Fibonacci Retracement: Drawing the fib retracement from the year’s low to the recent high, the 0.75 Fibonacci level lies at $0.3695
Resistance Zone
- Key Level: Price data highlights $0.435 as a significant S/R zone
- Fibonacci Retracement: The 0.618 Fibonacci retracement from the current wave aligns with the key level
Short Trade Setup
- Entry: 0.618 Fibonacci retracement/key level at around $0.435
- Stop Loss: Above the previous high
- Take Profit: Target the support zone at round $0.3725
- Risk-to-Reward (R:R): 4.5
Long Trade Setup (on confirmation)
- Entry: Long position between the support zone of $0.3725 and $0.3695
- Stop Loss: 3% SL
- Take Profit: around 0.39/0.4
- Risk-to-Reward (R:R): 2 or better
Trade closed: target reached
Monthly level and Fib 0.75 was breached, leading to a strong bounce off the 0.786 level
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.