XLM bears to shake out bulls if $0.30 holds as resistance
|- XLM price gets a dead-cat bounce to return to test $0.30.
- Rally may be temporary and not a sign of a recovery or a resumption of any bull market.
- Bears are likely to pounce on any weakness.
XLM price is flirting with testing the $0.30 value area but faces a collection of Fibonacci and Ichimoku zones ahead. If bulls cannot breach and stay above $0.30, then XLM bears are likely to regain control and push XLM further south.
XLM price gets ready for a big battle between the bulls and bears
XLM price has followed the broader market to trade higher and into the double-digit percentage gains. Shorts who entered at the bottom feel the pain while bulls who’ve held on feel some relief. Both sides of the market are about to make a big test to see whether the breakdown below $0.30 was an honest move favoring the bears – or a fakeout that will favor the bulls.
$0.30 is a vital price level beyond its psychological value. The 50% Fibonacci retracement, the bottom of the Cloud (Senkou Span B), and Tenkan-Sen reside with the $0.30 value area. If bulls fail to breach above $0.30, then a continuation move for XLM price below the $0.20 levels is next. The significant swing low that bears will target is $0.145 – the last high volume node and Fibonacci confluence zone for 2021 (and near the 2021 low).
XLM/USD Daily Ichimoku Chart
Bulls have a difficult path ahead of them if they wish to invalidate any bearish momentum. First, a close above the Kijun-Sen and 50% Fibonacci retracement at $0.31 would likely bring in some early buyers. Ultimately, however, bulls need to push XLM price into a condition where the Chikou Span is above the candlesticks and price is above the Cloud. For all of those conditions to occur, XLM price needs to close near $0.40.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.