💰Technical Analysis $XLM 💰
1. Main Trend:
XLM is in a strong uptrend, with many green candles breaking previous resistance levels. The price line is currently above the EMA lines, confirming that the uptrend is still dominant.
2. Support and Resistance Zones:
⭐Nearby Support: $0.42 - $0.43, which is the price zone that has just broken and may act as support when the price corrects.
⭐Nearby Resistance: $0.46, which is the price zone where XLM may encounter short-term selling pressure.
3. RSI Indicator:
RSI is currently at 87, in the overbought zone, signaling short-term correction pressure.
🌞Trading plan:
1. Trend trading:
⭐Entry point: Wait for the price to adjust to the 0.42 - 0.43 zone (near support) to enter a buy order. If the price continues to break the 0.46 zone with large volume, you can consider chasing the buy with a further target.
⭐Stop loss: Set below 0.41, because this is the current uptrend breakout zone.
⭐Take profit: Short term: 0.46 -0.48 zone.
Long term: Can expect to go up to 0.5 if the uptrend continues.
2. Short term trading (Scalping): Take advantage of short fluctuations around the 0.43 - 0.46 zone. Use lower timeframes (M15 or M30) to catch reversal signals.
3. Risk scenario: If the price drops sharply below 0.41 with high volume, the uptrend will be invalidated. In that case, consider stopping the trade or switching to a sideways position.
💰Potential analysis:
Short-term: XLM is benefiting from a strong rally, but the high RSI level warns of corrective pressure in the short term.
Long-term: If the current uptrend is maintained, XLM could head towards higher prices, especially if the overall crypto market continues to rally.