• XLM price consolidation provides an early warning that a breakout is about to happen.
  • Two hypothetical trade ideas were identified – one long and one short.
  • Traders look to capitalize on any clear move.

XLM price remains one of the most underwhelming major cryptocurrencies and a laggard with respect to its most recent price action. XLM is currently positioned for ideal trade setups on the long and short sides of the market. The two trade ideas identified in this article are based on two different sized Point and Figure charts.

XLM price has profit potential for bulls and bears alike

XLM price action shows there is a hypothetical trade idea for the short side of the market. The $0.025/3-box Point and Figure chart shows a constriction of price action with a possible bearish continuation pattern on the 3-box reversal. The short idea is an entry at $0.3250, a stop loss at $0.4000, and a projected profit target at $0.0700. This is the least likely setup, given the bullish nature of the aggregate cryptocurrency market.

XLM/USD $0.025/3-box Reversal Point and Figure Chart

On the long side of the trade, XLM has a very ideal bullish setup. The most recent X-column broke the dominant bear market angle and converted the $0.01/3-box Point and Figure chart to a bull market. The current O-column is the first pullback from that bullish breach. The hypothetical trade for the long side of the market is the 3-box reversal of Xs. Currently, that entry would occur at $0.4000 with a stop loss at $0.3600 and a projected profit target at $0.57.

XLM/USD $0.01/3-box Reversal Point and Figure Chart

The long entry idea has the highest positive expectancy rate given the present trend and overall sentiment. Additionally, the $057 target may be entirely too conservative given that XLM price has been a significant laggard and has yet to create a new all-time high.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Tezos Price Prediction: XTZ to provide bulls a generous exit before a 15% nosedive

Tezos Price Prediction: XTZ to provide bulls a generous exit before a 15% nosedive

Tezos Price is hovering above a stable support level after facing an intense rejection. While this foothold is likely to provide harbor, it will not be for long. Investors must prepare for a long squeeze as bears make an elaborate move.

More Tezos news

AVAX price exhaustion could lead to sizeable retracement, but for the better

AVAX price exhaustion could lead to sizeable retracement, but for the better

AVAX price is in a no man’s land and depending on how the altcoin reacts to a few barriers, investors can bet on its direction. But a minor retracement in the short-term seems likely given the current market conditions.

More Avalanche news

Why Terra’s LUNA is bound to face a technical punishment

Why Terra’s LUNA is bound to face a technical punishment

Terra (LUNA) price action is facing headwinds from both sides as a technical candlestick pattern is throwing a spanner in the works, together with that long-feared dollar strength that is re-emerging after several warnings from Fed.

More Terra news

Why Solana price action is going nowhere

Why Solana price action is going nowhere

Solana's (SOL) price, from a first glance at the sheet, looks bullish and set forth to continue its rally and winning streak. However, a closer look under the hood reveals that on a weekly chart, price action is going nowhere and could soon collapse once a tail risk gets inflated again.

More Solana news

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP