Hi traders!
We are going to analyze absolutely specific chart today - XLM / USD. It's not a typical technical analysis, but we want to prepare you for various traps and extremes on the crypto market.
Stellar is the tenth biggest cryptocurrency from the market capitalisation perspective, thus it's not any dwarf. So what can we read from the chart?
Stellar has been nicely finishing its structure and the last wave of a cycle, anticipating early growth. Triangle formation is often located before the last move in the current direction and it was even followed by a falling wedge formation. If you see these two formations, one after another, you win! In the vast majority of cases break and growth comes, and they did come. The growth of more than 52% in about 3 days. It even managed to stay high and the coin looked superbly.
However, Bitcoin broke down. Sharp decline sent Stellar to the bottom of the sea, literally. It fell by 42% in a couple of days. Given today's situation, we think it will continue to decline. At this point is essential to remind, that we are talking about the 10th biggest cryptocurrency. Similar extremes are common in cryptocurrencies and therefore we need to pay special attention. Key takeaway to remember here is to always scan the market as the whole. If any cryptocurrency looks really good but then Bitcoin is falling through floors you may simply have bad luck.
What to learn from this analysis?
1. Don't be greedy
2. Use stop-loss
3. Watch the market as the whole
4. Don't let emotions control you (market will keep tempting you)
5. Search only for the best situations on the chart
May the crypto be with you!
We are going to analyze absolutely specific chart today - XLM / USD. It's not a typical technical analysis, but we want to prepare you for various traps and extremes on the crypto market.
Stellar is the tenth biggest cryptocurrency from the market capitalisation perspective, thus it's not any dwarf. So what can we read from the chart?
Stellar has been nicely finishing its structure and the last wave of a cycle, anticipating early growth. Triangle formation is often located before the last move in the current direction and it was even followed by a falling wedge formation. If you see these two formations, one after another, you win! In the vast majority of cases break and growth comes, and they did come. The growth of more than 52% in about 3 days. It even managed to stay high and the coin looked superbly.
However, Bitcoin broke down. Sharp decline sent Stellar to the bottom of the sea, literally. It fell by 42% in a couple of days. Given today's situation, we think it will continue to decline. At this point is essential to remind, that we are talking about the 10th biggest cryptocurrency. Similar extremes are common in cryptocurrencies and therefore we need to pay special attention. Key takeaway to remember here is to always scan the market as the whole. If any cryptocurrency looks really good but then Bitcoin is falling through floors you may simply have bad luck.
What to learn from this analysis?
1. Don't be greedy
2. Use stop-loss
3. Watch the market as the whole
4. Don't let emotions control you (market will keep tempting you)
5. Search only for the best situations on the chart
May the crypto be with you!