XLM price awaits confirmation to show clear trajectory
- XLM price experienced significant sell-offs for several weeks.
- Stellar could continue to trade sideways or even push lower.
- Traders should wait for a Wycoff spring or a breakout above key resistance.
XLM price looks weak as bears continue to apply pressure. Traders should wait for more bullish confirmation before placing any trades.
XLM price hangs by a thread
XLM price is currently trading at $0.187. The altcoin has been shorted heavily over the last few weeks, and still, bears have not shown any signs of letting up nor the trend displayed any significant signs of change. A Wycoff spring, a market event where bullish liquidity gets swept by the bears and rallies shortly after, should occur within the current range before investors consider opening a long position. If not, they should expect more sideways action.
The Relative Strength Index is converging with the current trend line, which is a bullish signal. However, as it is climbing up from under the 40 level, it should not be considered a strong confluence.
XLM/USD 2-Day Chart
Still, one should not count on XLM continuing lower, as Cryptocurrencies are notoriously known to make volatile rallies that come out of thin air. The best way to detect a change in trend will be a break above the range, which is currently 30% above the current price. If bulls can manage to pull that off, then getting in on a pullback will be a favorable trade, challenging October's swing high at $0.35
Author
FXStreet Team
FXStreet
