XLM/BTC - Double Weekly Bullish Cross This is a short post. Since Bitcoin dominance has broken down and settled near the 50% level, we might expect altcoins to continue outperforming, perhaps even until the market reaches its eventual cycle peak.
Here, you can see that the 9 week EMA (orange) and the 50 week MA (red) have both crossed over the 100 (yellow). If these Moving Averages continue to support the ratio, I think XLM can make some extraordinary gains on the BTC pair. This could still take some weeks to play out, or it can happen now. The MACD is also showing that volatility has completely flatlined, meaning that a huge move could be immanent.
One of my main USD targets for XLM is the $5 level. If XLM reaches the 5000 sats with Bitcoin merely doubling from here, that puts XLM price in that range. The fact that XLM has made a long term HIGHER low against Bitcoin is also significant. In 2017, the low was near 100 sats. In 2020, the low was in the 300-500 sat range, as shown on this chart. Just using basic trend analysis, one can even expect XLM/BTC to make a new high. If it doesn't that will present the possibility of broader range-bound behavior, which would also be useful for profit optimization during crypto bull cycles in the future.
Let's see what happens! None of this is meant to be financial advice. This is for speculative purposes only.
-Victor Cobra
