Well, it’s time to start the XLM market analysis and see if the scenario that we wrote in the previous analysis worked out.
At the moment, there are no facts nor signals for considering the alternative scenario of the price movement. We are talking about the continuation of growth at least to USD 0.11. The fact is that sellers were able to reach USD 0.075 this week. And buyers, on 12 July, instead of trying to fix higher USD 0.094-0.097, allowed sellers to test a temporary price mark. Now, the probability that buyers will break through the liquid price zone and return the price to the triangle is rather low.
We do not see the fire in the eyes of XLM buyers:
At 4-hour timeframe, it is evident that during the growth of prices and approaching to the purple price zone, the volumes of trading fall. The growth pattern is more like a correction. And if you look at the weekly timeframe, you can see that after the aggressive sellers’ candle, buyers are very weak with almost identical volumes of trades:
We also remind that globally, the price continues to move in the falling channel from January 2018. Although buyers did not test the upper trend line of the channel, it does not mean that their attack was not over. And in the range of USD 0.05-0.057, passes the lower trend line of this channel. In addition, the range, which we wrote above, restrained buyers in May 2017. And also this range is their reliable support.
According to the wave analysis, the level of 38.2% worked perfectly and the price, after testing this level, turned around. We wrote about it in the previous analysis. If our main scenario is true, then sellers will try to break through this level again with a near-term prospect of USD 0.05.
Do we see a low chance for buyers to start growth from current prices? At 4-hour timeframe, it is seen that after the last wave of fall its correction is deep enough. And if buyers do not allow to update the local low their chances will grow significantly:
The next week will be the last full week of July, and we will sum up the month of XLM coin. We wish you a good weekend and do not forget to visit our analysis next Saturday!
Charts Courtesy: TradingView
The post BitcoinNews.com XLM Market Analysis 20th July 2019 appeared first on BitcoinNews.com.