(XLM) Stellar Has Hit The Support | Now Ready For Breakout
Movement in falling wedge:
The priceline of XLM has formed if falling wedge pattern and if we observe the price action of Stellar then it can be clearly seen that the priceline is moving within this wege since December 2018. I have also have placed the volume profile on the complete price action moving within this falling wedge pattern and the volume profile is showing that the trader’s interest is really very low below $0.038. And at this time Stellar is moving at the area where the trader’s interest is weak. And the point of control of this volume profile is at $0.058 therefore there are strong chances that the price action will move up from here at least up to point of control of this volume profile. Here we can see that the falling wedge is getting squeezed therefore at this point the priceline can soon take the decision to breakout or breakdown. And there are more chances that the priceline will go for breakout rather than breakdown.
The Momentum and stochastic indicators:
Here I am waiting for two more signals on this weekly chart. One is Momentum indicator, that is still strong bearish and other one is stochastic that is very close to the oversold zone. If the momentum will start turning bullish and the stochastic will give the bull cross then we can expect that the priceline will soon make an attempt for the break out from this falling wedge pattern like it has attempted 13 May 2019 and 10th Feb 2020.
Bullish crab another strong support:
There was another reason that stopped the priceline to breakdown the support of this falling wedge pattern. And that was the formation of bullish Crab pattern on 2 day chart that we have already discussed in my previous articles. And this pattern was formed at the support of the Wedge pattern and the price action just hit the spike in the potential reversal zone of this bullish Crab and moved up. This was very strong reason that also provided very strong support to the priceline and stopped the price action to break down
After breakout from wedge the big bullish BAT can again come in play:
In case of break out from the falling wedge pattern that has been formed on the weekly chart the price action can again re-enter in the potential reversal zone of very big bullish BAT pattern that has been formed on the monthly chart. I have already shared this big bullish BAT pattern move several times if someone has missed then I am sharing the link below:
The priceline of XLM has formed if falling wedge pattern and if we observe the price action of Stellar then it can be clearly seen that the priceline is moving within this wege since December 2018. I have also have placed the volume profile on the complete price action moving within this falling wedge pattern and the volume profile is showing that the trader’s interest is really very low below $0.038. And at this time Stellar is moving at the area where the trader’s interest is weak. And the point of control of this volume profile is at $0.058 therefore there are strong chances that the price action will move up from here at least up to point of control of this volume profile. Here we can see that the falling wedge is getting squeezed therefore at this point the priceline can soon take the decision to breakout or breakdown. And there are more chances that the priceline will go for breakout rather than breakdown.
The Momentum and stochastic indicators:
Here I am waiting for two more signals on this weekly chart. One is Momentum indicator, that is still strong bearish and other one is stochastic that is very close to the oversold zone. If the momentum will start turning bullish and the stochastic will give the bull cross then we can expect that the priceline will soon make an attempt for the break out from this falling wedge pattern like it has attempted 13 May 2019 and 10th Feb 2020.
Bullish crab another strong support:
There was another reason that stopped the priceline to breakdown the support of this falling wedge pattern. And that was the formation of bullish Crab pattern on 2 day chart that we have already discussed in my previous articles. And this pattern was formed at the support of the Wedge pattern and the price action just hit the spike in the potential reversal zone of this bullish Crab and moved up. This was very strong reason that also provided very strong support to the priceline and stopped the price action to break down
After breakout from wedge the big bullish BAT can again come in play:
In case of break out from the falling wedge pattern that has been formed on the weekly chart the price action can again re-enter in the potential reversal zone of very big bullish BAT pattern that has been formed on the monthly chart. I have already shared this big bullish BAT pattern move several times if someone has missed then I am sharing the link below:
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