Bitcoin‘s price drop triggered extreme sell-offs in many altcoins, creating significant buying opportunities. In the past, we have seen double-digit profit opportunities in altcoins after periods of excessive selling. The recent BTC sell-offs have also initiated a similar process. So what should those who missed the rise of XLM Coin do?
Stellar experienced a sharp drop last week but rebounded on August 17th. This created a long lower wick and led to a 25% increase. The rebound confirmed the $0.105 area, which is crucial for determining the future trend.
Readings on the weekly chart indicate that the price broke out of a 616-day resistance line in January. Breakouts from such long-term structures indicate the completion of the previous correction and the beginning of a new movement in the opposite direction. We have seen many trend lines that have been in place for 600-800 days break this year. These breakouts in altcoins seem to be a signal for a general market recovery.
The $0.105 level is critical for XLM Coin’s price. In July, the price successfully rallied from this level and reached its yearly high of $0.195. However, the subsequent steady decline made another visit to this critical zone possible. Now, the price has once again recovered from this level.
The lower wick formed by the recent recovery is considered a sign of buying pressure, and the strength of the $0.105 support has been confirmed. If the rebound continues, the next resistance is at $0.23, which is 87% above the current price. On the other hand, a break below $0.105 could lead to rapid selling and a 41% drop to $0.080.
The horizontal resistance area is at $0.13, and bulls will need to keep the price above this level. Currently, XLM Coin, which found buyers at $0.1227, has not yet determined its direction clearly. Investors should focus on closing above the resistance level before targeting the $0.23 mark.
Of course, technical analysis does not predict the future, and the cryptocurrency markets involve high risks. Therefore, it is not surprising to see unexpected price movements.