XLM - Will XLM Find Strength or Stumble?
2025-01-27
Category: None

XLM has been in a downtrend for the past 10 days after rejecting from the 0.618 Fibonacci retracement resistance. The price action shows lower highs and lower lows with no significant volume, signaling a potential continuation of the trend. Let’s identify the key support and resistance zones and possible trade setups.

 Support Zone 
A strong support zone lies between $0.3725 and $0.3695 based on multiple confluences:
 
 Monthly Level: At $0.3725
 Anchored VWAP: From the very low, the VWAP aligns with the monthly level 
 Fibonacci Retracement: Drawing the fib retracement from the year’s low to the recent high, the 0.75 Fibonacci level lies at $0.3695
 
 Resistance Zone 
 
 Key Level: Price data highlights $0.435 as a significant S/R zone
 Fibonacci Retracement: The 0.618 Fibonacci retracement from the current wave aligns with the key level
 
 Short Trade Setup 
 
 Entry: 0.618 Fibonacci retracement/key level at around $0.435
 Stop Loss: Above the previous high
 Take Profit: Target the support zone at round $0.3725
 Risk-to-Reward (R:R): 4.5
 
 Long Trade Setup (on confirmation) 
 
 Entry: Long position between the support zone of $0.3725 and $0.3695
 Stop Loss: 3% SL
 Take Profit: around 0.39/0.4
 Risk-to-Reward (R:R): 2 or better
