XLMETH - 5 Waves complete, Corrective A Wave underway
It looks like XLM has completed it's 5 impulse waves up, and is now in a corrective cycle. The price has dropped below wave 3 range, which means this isn't a wave 2 or 4 corrective cycle, but we're now in Wave A of a larger corrective cycle. Given that there hasn't been a rally (Wave B) of note, I think we will see a short term rally upwards in the next day or two, followed by a further drop.
It's already touched on the 0.382 retracement line on wave A, so a further retracement to 0.5 or even 0.618 is fully on the table after it has it's rally.
Will watch closely to see how this plays out in the next couple days. Once it's finished correcting, this will likely be a very strong opportunity as it begins it's next impulse wave up.
Daily RSI still hasn't hit oversold conditions yet also, so more correction seems likely.
It's already touched on the 0.382 retracement line on wave A, so a further retracement to 0.5 or even 0.618 is fully on the table after it has it's rally.
Will watch closely to see how this plays out in the next couple days. Once it's finished correcting, this will likely be a very strong opportunity as it begins it's next impulse wave up.
Daily RSI still hasn't hit oversold conditions yet also, so more correction seems likely.
Comment:
It's very exciting when a chart plays out to expectations. I can't wait to see if I called the B top.
Comment:
We've dropped into a good buy-in zone, however there isn't any clear indication that it's entered into an upswing. It's possible that it could correct further - particularly if you look at the XLMBTC charts.
Some other authors that I follow are suggesting now is a good time to buy in due to various indicators, but a cautious approach would be to wait for a bounce upwards that confirms the start of a new upwards trend.
If you're an aggressive trader, you could buy in and set stops below the 0.618 line, however because this was an ABC wave correction, it's a gamble.
Daily RSI, Stoch and MACD all suggest a further drop is possible.
4HR RSI, Stoch and MACD show some bullish divergence.
1 HR RSI and MACD show bullish divergence, MACD shows inconclusivity.
If you're gonna trade this one, be careful. Or wait for confirmation of an uptrend.
Some other authors that I follow are suggesting now is a good time to buy in due to various indicators, but a cautious approach would be to wait for a bounce upwards that confirms the start of a new upwards trend.
If you're an aggressive trader, you could buy in and set stops below the 0.618 line, however because this was an ABC wave correction, it's a gamble.
Daily RSI, Stoch and MACD all suggest a further drop is possible.
4HR RSI, Stoch and MACD show some bullish divergence.
1 HR RSI and MACD show bullish divergence, MACD shows inconclusivity.
If you're gonna trade this one, be careful. Or wait for confirmation of an uptrend.
