XLM price remains unchanged as buyers wait for Stellar to hit $0.55

  • 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.

 

This news is republished from another source. You can check the original article here

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