Hi friends! Let's take a look at Stellar! Well, well, well, some interesting developments have materialized! Looking at the four hour chart, we can see that XLM -0.15% has slowly crept out of the falling parallel channel , and is now actually trading above the 50 EMA (in orange.) Looking at this structure, it clearly resembles many of the structures that I'm seeing on the other charts. Bitcoin -7.67% , Litecoin, Ripple, Ethereum -5.54% , the list goes on — so many of these cryptos are forming the exact same pattern, and it resembles a deep cup and handle . A few days ago, it looked like an oddly shaped bear flag , but now, it looks a lot more like a cup and handle formation. Some of them are even starting to breakout to the upside. XLM -0.15% , however, has yet to reach the breakout level (black trend line .) So, lets do some visionary work. Typically, when traders want to find a price target, they usually measure the structure, and then add the measurement to the breakout area, to estimate a price target. When I do this sort of estimating, I like to find some support or resistance, that is somewhat close to the estimated price target. However, if there is a strong level halfway to the estimated target, I will opt for that. In this case, I think a fair target could be the top of the ascending broadening wedge (blue dashes.) However, we need to see a breakout first, and we don't have that yet. Keep in mind, that XLM -0.15% could easily fall back into the falling parallel channel . So, before we go crazy with the cup and handle thing, lets print a breakout on the chart. On the MACD , we can see that it continues to expand upward, and it has just crossed the zero line, which is a short-term buy signal. In summary, the bulls appear to be gaining some ground. There appears to be a cup and handle formation on the chart, but we need to see a breakout for confirmation. We've gotten back above the falling parallel channel and the 50 EMA , but let's watch for a bit more evidence, before jumping on the bull train.
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This information is not a recommendation to buy or sell. It is to be used for educational purposes only.