XLM/USD Triangle Support Giving Way • Live Bitcoin News


Stellar is also breaking below a key support zone at the bottom of its long-term symmetrical triangle. This could indicate that more losses are in the cards, possibly lasting by the same height as the chart pattern.


Price is also trading below the 100 SMA to confirm that bearish pressure is very much present. The chart pattern spans 0.18 to 0.36 so the resulting drop could take its value to almost zero.

However, RSI is already indicating oversold conditions to show that bears might be feeling exhausted and willing to let buyers regain control. The oscillator needs to pull up first, though, before confirming that bullish momentum is back in play. If that happens, Stellar could still recover to the triangle top at 0.26 or at least until the area of interest around the middle.

Stochastic has some room to head lower so the price might follow suit. After all, this signals that sellers still have some energy left and could continue to stay in control. Those long spikes down, however, suggest that some bulls are still trying to fight for control.

XLM/USD Chart - TradingView

This might be a tall order leading up to the Thanksgiving holidays, though, as traders typically book profits ahead of the long weekend. The FUD in the crypto markets isn’t helping Stellar’s cause and might expose it to more losses as technical levels give way.

The recent slide is being pinned on the mining war that stemmed from the Bitcoin Cash hard fork, the SEC probe on ICOs, and weaker expectations for institutional investment even until next year. This could continue to keep a lid on cryptocurrency gains unless there’s a big catalyst that inspires a reversal.

What that might be, however, remains a huge question mark for most market watchers. Still, be on the lookout for additional volatility ahead of the thin liquidity during the holidays.


Images courtesy of TradingView

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