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Here’s Why Stellar Lumens Is Poised to Spring back Against Bitcoin

August 15, 2020

Stellar Lumens (XLM) has fabricated against Bitcoin over the past few days, weakening to follow other principal altcoins higher. Signs suggest that altcoin may soon overtake Bitcoin – a sentiment in line with those shared by crypto dealers.

TD Sequential; Stellar Lumens Could Bounce Against Bitcoin after Drop

Like Bitcoin, a leading cryptocurrency has been pressing higher over recent days; Stellar Lumens has been bleeding out against it. The chart below shows XLM’s underperformance of BTC on the right side of the table.

The coin is supposedly due to bounce, an analysis from Tom Demark Sequential specifies. The sequential is a sign that forms “9” and “13” candles when an asset experiences a technical inflection point in its trend.

In their case, a “buy 9” candle has formed. This recommends that Stellar will recuperate against Bitcoin shortly. The mentioned sequential had quite a strong performance calling XLM pride action in the last months, forecasting local lows in April, late May, and early July.

Chart of XLM’s price action against Bitcoin over recent months with Tom Demark Sequential levels and candles by a Telegram channel tracking this technical signal. Chart from TradingVIew.com

Other analysts are also bullish on Stellar Lumens. One trader shared the chart below last week, writing the following on why the asset is poised to go parabolic in the weeks ahead:

Some analysts are also bullish on Stellar Lumens. A trader shard the chart below a week ago, writing the following on why the asset is composed to go parabolic in the weeks ahead:

             XLM is still one of my favorites

1.       Broke +350 days of accumulation range

2.       Good volume expansion in the breakout

3.       Break-in market structure

4.       Currently retesting the accumulation range and making a new higher low.

Chart of XLM/BTC macro price action with analysis by trader Inmortal Technique (@Inmortalcrypto on Twitter). Chart from TradingView.com

Bitcoin Needs to Hold $10,500

For altcoins to outperform Bitcoin, some analysts think that the leading cryptocurrency must maintain its consolidation in the $10,500 – 12,000 range. One factually accurate crypto trader wrote on the matter, referencing the chart below:

“BTC. 11500-11700, then down to test the 10400-10500 support zone, which should hold for a while. Looking for longs above that level and shorts below it. Altcoins should perform very well as long as BTC stays above 10.5k -> $EOS, $XTZ, $XRP, $XLM (Stellar)…”

Price chart of BTC fractal by crypto trader il Capo of Crypto (@Cryptocapo_ on Twitter). Chart from TradingView.com

There are still other analysts that don’t think Bitcoin is still in a bullish state.

One trader stated that since Bitcoin keeps failing to surmount $12,000, it could go back to the $9,000s. However, this same trader noted that altcoins might impede rather well for the time being (Stellar Lumens was not particularly mentioned).

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