The previous week of trading of XLM coin differed neither with abnormal candles nor with enlarged volumes. The price was moving in a range of 18%. Sellers tried to lower the price below the price range of USD 0.125-0.13, but the weekly candle closed over this zone and at the moment buyers successfully keep this price zone. If you look at the 4-hour timeframe, it’s clear that the sellers at increased volumes tried to break through the price range of USD 0.125-0.13:
We also see the black trend line of support that buyers kept from 16 May. If sellers can break through this trend line, then the road to USD 0.095 is open for sellers.
However, so far, the power is on the side of buyers and if you look at the weekly timeframe, you can see that sellers for the second week are not able to win the price zone of USD 0.125-0.13:
The month candle closed under the price zone we are interested in, but the candle looks pretty cheerful and we think that the fight in the current range of trade will continue:
However, we want to repeat that the main critical point for this coin is the range of USD 0.18-0.21. In this range is the concentration of consolidation, which lasted more than 8 months. Also in this range is the upper trend line of the falling channel, therefore globally, while the price is below USD 0.18-0.21, then we are in a declining trend.
We also noticed that the difference between the trend line test in the two preceding cases was 200 days. While this trend is still on the chart, and the probability of a new trend line test is quite high:
Therefore, since the situation has practically not changed from the previous analysis, the main scenario and critical points remain unchanged. We expect activity from the buyers because strength is on their side now.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market.
Image Courtesy: TradingView
The post BitcoinNews.com XLM Market Analysis 1st June 2019 appeared first on BitcoinNews.com.