TradeCityPro | XLM : Tracking Corrections and Key Levels
2025-01-10
Category: None

👋 Welcome to TradeCity Pro!
In this analysis, I’ll review the XLM coin. The Stellar project is one of the oldest crypto projects and operates one of the earliest decentralized exchanges (DEXs).

📅 Daily Timeframe: Correction After a 500% Rally
In the daily timeframe, we observe a powerful upward trend. After bottoming out at $0.0884, bullish momentum entered the market. Once $0.1101 was broken, this momentum increased further. With higher buying volume and RSI entering the Overbought zone, the resistance at $0.1566 was also broken, and the price is now near its ATH.

🔍 After reaching the $0.5653 resistance, buying volume and bullish momentum slowed, and the market has entered a more stable corrective phase. So far, the price has corrected to $0.3308, which isn’t even the 0.382 Fibonacci level and indicates the correction hasn’t fully reflected the sharp price increase.

📈 The price might resume its upward movement with strong momentum even with this shallow correction. If the $0.5653 ceiling is broken, the price could move to the $0.7247 ATH resistance and potentially form new all-time highs if this resistance is surpassed.

🔽 However, the price is currently forming lower highs, which increases the likelihood of further correction due to insufficient correction thus far. If the market leans towards correction, the price might retest the $0.3308 support and, if broken, could reach supports like the SMA99 and the 0.382 Fibonacci level. Further corrections could lead the price to 0.5 and 0.618 Fibonacci levels. A break below 50 on RSI would strengthen the corrective scenario.

✨ If you’ve previously bought this coin at lower prices and are looking for an exit point, I recommend exiting if the price stabilizes below $0.3308. However, if you wish to maintain your profits and re-enter, you can consider buying again if the price recovers above this level.



⏳ 4-Hour Timeframe: Futures Triggers
In the 4-hour timeframe, we can observe the price movement during the correction phase in greater detail. As you can see, the price has a critical resistance at $0.4651, which it has tested multiple times.

📊 The best long trigger currently is breaking the $0.4651 resistance, with the first target being $0.5781. Breaking this $0.5781 level would provide a second long trigger.

🔽 For short positions, the first trigger, which is quite risky, is breaking $0.3907, while the main trigger is $0.3240. The targets for these positions have been identified using Fibonacci levels in the daily timeframe. However, since the main trend remains bullish, all short positions carry significant risk.



📝 Final Thoughts

This analysis reflects our opinions and is not financial advice.

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