After buyers having lost control over the price of USD 0.118, they tried to change the situation. However, on 29 June, the power of buyers was enough only to touch this price. Remind you, that this price mark was the lower limit of consolidation, which sellers broke on large volumes on 27 June, thereby showing the desire and opportunity to continue to fall. Now the price has stopped near the bottom trend line of the triangle, which we wrote about in the previous analysis. It was important for us to see how buyers and sellers would behave near this line because for 5 months, buyers kept this trend line and in order to break through it, we need good volumes. However, we do not see them yet. On the contrary, when approaching this line the volumes are decreased, which may indicate a change in the number of sellers to the smaller side:
According to this chart, we also see that after breaking USD 0.106, buyers can again rely on a new wave of growth with the target of USD 0.145, where a new critical point will come up:
Globally, the previous weekly candle closed with a good breakthrough prospect of USD 0.095. We see that the candle closed without a pin on increased volume, but the current weekly candle does not yet confirm the prospect:
According to the wave analysis, we see that the current wave of the fall is one of the five triangle waves, in which the price is traded from February 2019. However, the chart shows that buyers could not test the upper trend line of this triangle, and we drew another trend line, which shows the weakness of buyers:
Therefore, we think that the wave (e) may end at a price of USD 0.145, where coincides both the upper limit of the consolidation and the upper trend line of the global falling channel, in which the price is traded from January 2018. If buyers are able to break through this critical point, then it is safe to say that the trades of the sellers are over and there is a strong growth trend ahead of us.
Therefore, the critical points of the XLM remained the same. For sellers, it is important to pass USD 0.095, in this case, the prospect of falling to USD 0.05 and for buyers, it is important to take control of USD 0.145. Then there are great chances for USD 0.2 test. Tomorrow will close a weekly candle and if the situation does not change for a day, we think that next week will be a week of growth. Let’s meet next Saturday and give a summary of our analysis. Have a profitable trades!
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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.
Charts Courtesy: TradingView
The post BitcoinNews.com XLM Market Analysis 6th July 2019 appeared first on BitcoinNews.com.