I have had quite a bit of cash ready to deploy since Bitcoin has made it's ride up. I'm now starting to feel pretty confident in the trends establishing in some alts, namely in the XLMUSD pair.
While I do enjoy talking about the fundamentals of different blockchain technologies, they are in no way my specialty.
What I am decent at is trend analysis. And I think I've found a goldie here (early on too).
With BITFINEX:BTCUSD screaming high above $8k, we've seen most alt coins lag quite a bit. Most performances have been pretty bismal, but I think things may be about to turn around if we can see Bitcoin cool off here.
One coin that grabbed my eye was BITFINEX:XLMUSD . I did some chart analysis and it seems to have reversed trend giving us a great set up with good potential upside of around $0.30 for my near term target.
I entered a trade at $0.11
Case for the Bulls:
- Strong bounce off of supporting trendline
- Clean break out from suppressing trendline
- First bullish sign from Lazy Bear Indicator
- Bitcoin showing upside
Case for the Bears:
- General Altcoin market conditions may not yet be ready
- Case for this to be a bull trap
Overall, as long as we hold the supporting trendline , we have an uptrend. All we must do is buy the higher lows and protect our capital in the event of a reversal.
Nothing fancy here, just good ole trend trading.
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